The Crypto and Digital Assets All Party Parliamentary Group (APPG), supported by CryptoUK as secretariat, recently wrote to HM Treasury and the Financial Conduct Authority (FCA) to raise concerns around transitional arrangements and regulatory readiness ahead of the UK’s new cryptoasset regime.
Following extensive engagement with industry, the APPG highlighted strong support for the UK’s ambition to become a global digital assets hub but also consistent concerns around the scale, pace, and complexity of transition into the new framework. The APPG also noted that firms will be required to move from the current AML regime to full FCA authorisation, meeting significantly higher standards across governance, financial resilience, risk management, safeguarding, and consumer protection, requiring substantial operational and financial change within a relatively short timeframe.
In its letter, the APPG Co-Chairs Gurinder Singh Josan CBE, MP and Lord Ed Vaizey asked whether transitional or phased implementation measures could support a smoother transition, while also seeking clarity on FCA resourcing and readiness to manage authorisations and supervision effectively from day one.
HM Treasury, in its response, said the current timeline “strikes the right balance”, with firms given over a year to secure authorisation ahead of the regime going live in October 2027. It also highlighted FCA support measures and ongoing investment in regulatory capability.
The FCA said it is actively considering transitional arrangements and continues to prepare for the volume and complexity of applications, while building specialist capability and supporting firms through engagement, guidance, and its upcoming Pre-Application Support Service.
The APPG will continue to work closely with industry, Government and regulators to help ensure the UK’s crypto regime is robust, workable, and supports growth while maintaining high standards. If you would like to review all three letters, you can find them here:
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