The FCA’s current AML registration process, which is relatively limited, is already extremely stringent, rejecting or prompting withdrawal of more than 85% of applications, he noted in an email. The forthcoming framework will impose considerably wider obligations, encompassing consumer duty, prudential standards, operational resilience, and senior‑management accountability.
Cattee warned firms not to postpone their submissions, citing Europe’s MiCA rollout, where many waited until the last minute, causing licensing backlogs that left some companies operating without authorization.
For institutional investors, however, the new framework signifies far more than merely another set of crypto regulations.
Sandy Jones, director of digital assets at Baillie Gifford, observed that regulation alone does not guarantee crypto safety, but it does deliver the legal certainty and governance standards that traditional financial institutions require to embrace blockchain‑based infrastructure.
“The underlying technology is powerful, but it does not by itself open a direct route into mainstream financial markets,” Jones said. “Legal clarity, operational resilience, sound governance, and rules that investors and institutions can recognize are essential.”
Jones also praised the FCA’s recent tweaks to its stablecoin regime, noting they establish a solid settlement framework while avoiding unnecessary operational burdens.
Industry reactions indicate the FCA is intentionally presenting the UK as a commercially pragmatic alternative to Europe’s MiCA regime. However, whether firms will opt for Britain over other jurisdictions will hinge less on the ambition of the framework and more on how consistently it is applied in the months ahead.
