The UK’s Financial Conduct Authority says one of its main goals for 2026 is to let local companies test and roll out stablecoin payment systems. The plan was outlined in a letter from FCA Chief Executive Nikhil Rathi to Prime Minister Keir Starmer, highlighting the regulator’s broader push to modernize the country’s financial framework.
Rathi said the FCA intends to finalize a full set of digital asset rules next year, covering areas such as stablecoins, trading platforms, lending, staking, and custody. The work is being carried out with the Bank of England as part of a wider effort to ensure the UK can support new forms of financial technology while protecting consumers.
According to Rathi, the reforms are designed to help the UK maintain its competitive position in global finance and attract investment. He noted that fast-moving technology demands flexible regulation focused on practical outcomes rather than rigid rulebooks.
The UK has taken a gradual approach to crypto oversight, in contrast to the rapid regulatory developments seen in the United States. While this slower pace has been criticized by some firms, including Consensys, momentum has increased in recent months. The FCA recently opened a regulatory sandbox for sterling-based stablecoin issuers, offering companies a controlled environment to test their products. Applications are open until Jan. 18.
The country also passed the Property (Digital Assets etc.) Act 2025 earlier this year, giving digital assets formal recognition as property under UK law. Rathi said the FCA will continue adjusting its supervisory style to better fit different types of firms, acknowledging that some risks are inevitable but emphasizing the need to address the most serious harms.
