UK speeds up digital asset regulatory overhaul… "Will be fully implemented in 2027"

The UK, which has consistently taken a cautious stance toward digital assets, appears to be accelerating the establishment of regulations related to digital assets.

On the 20th (Korean time), CoinDesk, a digital-asset-focused media outlet, reported that the UK Financial Conduct Authority (FCA) published a consultation paper on digital assets this week. The FCA's consultation is expected to form the core framework of UK digital asset regulation, targeting implementation in October 2027.

The UK has been pursuing a roadmap to bring digital assets into the regulatory framework for a year. In the early stages of the roadmap, the focus was on basic rules such as stablecoin issuance and custody, capital requirements, and operational resilience, and this consultation expands the scope of discussion to regulatory areas covering the entire cryptoasset market, including trading platforms, brokerage, staking, decentralized finance (DeFi), listing and disclosure, and regulation of market disorderly conduct.

In particular, unlike the European Union (EU)'s digital asset law 'MiCA', the UK has chosen to extend existing financial services regulations to digital assets. Some say that because the UK is later to institutionalize than the EU or the US, it has a "late-mover advantage" that allows it to refer to other countries' implementation cases.

David Heffron, a Pinsent Masons lawyer, said, "It is still too early to draw definitive conclusions," but added, "However, the UK market is very important, and overseas firms will want to use the UK's market liquidity."