Crypto sector welcomes softening of UK regulation

Thomas Cattee Partner and Head of White-Collar Crime at Gherson LLP, has been quoted in The Banker, an FT publication, in an article examining recent changes to the UK’s approach to crypto regulation.

The article, “Crypto groups welcome softening of UK regulation”, considers recent developments announced by the Financial Conduct Authority (FCA) and the Bank of England (BoE). The changes have been welcomed by parts of the digital assets industry, although significant regulatory requirements remain for firms operating in the sector.

The FCA’s new rules will apply to crypto activities from October 2027, with the regulator lowering certain capital requirements and changing disclosure obligations. At the same time, firms will face stringent requirements relating to financial crime and anti-money laundering controls, operational resilience and the senior managers regime.

Thomas Cattee commented on the challenges firms may face when seeking authorisation:

“There is a very high risk of failure for crypto firms applying for authorisation. The new FSMA regulatory framework is far more demanding and extensive, and existing AML registration will not automatically convert into authorisation”.

The article highlights that, despite the easing of some elements of the proposed regime, crypto firms seeking authorisation in the UK will still need to meet extensive regulatory requirements.

Read the full article in The Banker: “Crypto groups welcome softening of UK regulation”.