The UK’s crypto regulatory regime is starting to take shape, but are we moving quickly enough to secure our position as a global digital assets hub?

It’s clear that policymakers want the developing regime to act as a bedrock for a thriving and competitive cryptoasset business ecosystem – but there is much work still to be done to realise this vision.

The Crypto and Digital Assets APPG, co-chaired by Lord Ed Vaizey and Gurinder Singh Josan CBE MP, recently hosted its first crypto industry roundtable of 2026 in Parliament.

I joined other prominent industry voices to unpack the UK’s proposed crypto regulatory regime, consider how potential gaps can be closed and barriers to investment overcome, and explore how the UK currently compares to its peers on the global stage.

The race for regulatory readiness

With the FCA now in the final phase of its consultation process, and gathering feedback on applying Consumer Duty to crypto firms, credit must be given to the regulator for actively taking industry views on board. The UK has benefitted from a more systemic, phased, and predictable consultation process guided by the FCA’s extensive crypto roadmap. This contrasts with the generally more fragmented, enforcement-led approach seen in certain other jurisdictions, such as the European Union (EU).

The consultation process is plotting out a route to a regulatory regime that takes all stakeholders’ concerns into account, and that should hopefully help us avoid issues like the recent scenario in the US, where Coinbase’s decision to withdraw its support for the CLARITY Act has stalled the legislation.

That said, a number of participants felt that the process should have started earlier, with more guidance given. There is a lot of literature for firms to wade through, which is particularly difficult for smaller firms with less resources. There are concerns as to whether firms will be ready in time for when the application gateway opens on 30 September 2026, which marks the start of a five-month application window for firms to seek authorisation under the new regulatory regime entering into force on 25 October 2027.

I also highlighted that it’s not just a question of firms being ready; the regulator will also need to be properly resourced and equipped ahead of an influx of applications. Have lessons been learned from the Fifth Money Laundering Directive (5MLD) and Financial Promotions experience, and the lack of resources available at the time – not just in terms of reviewing applications, but also post application in terms of appropriate enforcement.

Ramping up international cooperation

Speaking of lessons learned, the day’s discussions also covered international developments, and what can be gauged from other markets’ journeys.

Comparisons with the US, UAE, and EU featured heavily, with a view that the US is currently moving faster and attracting increased investment as a result.

UK-US engagement is set to ramp up, with the Transatlantic Taskforce for Markets of the Future aiming to align regulation on digital assets and capital markets, enhancing cooperation to foster innovation, reduce regulatory fragmentation, and create consistent standards.

Encouraging UK firms to access the US market and vice versa will bolster our nascent industry, but it’s important to ensure that equivalence arrangements are fair.

Another topic discussed was whether the UK should consider appointing a ‘crypto tzar’, with the role mirroring the White House’s crypto advisor David Sacks, who is helping to champion the industry’s role in the financial system.

Looking to the UAE, the Abu Dhabi Global Market’s (ADGM) Virtual Asset Framework and the developing FCA regime in the UK are converging on a similar philosophy: bringing crypto under mainstream financial services regulation to foster innovation while ensuring high levels of investor protection.

Having taken part in Techscaler’s recent UAE Market Engagement Mission, Zumo can attest to the UAE’s appetite to work with the UK to develop new digital asset corridors. During the APPG roundtable, participants considered the parallels between the markets, and whether the FCA will be adequately resourced to provide something close to the level of hand-holding that VARA, the world’s first specialised regulator for crypto assets, provides from its base in Dubai.

Tackling tough questions

The message from both industry and government was crystal clear: the UK must now move at pace to remain competitive, while ensuring meaningful industry engagement so the final regime is workable and fit for purpose.

The signs are good. The incoming regime will give businesses greater clarity on what it means to operate a cryptoasset business in the UK, while consumers will for the first time have a tangible set of investor protections and the assurance of interfacing with regulated businesses held to the stringent standard of UK financial services.

But there are still issues to be worked through. Is it realistic to expect Day One full implementation of the new regime? We need to come together to work out how we can avoid a potential cliff edge scenario, and this could be achieved through a grandfathering period or another transitional provision to help the industry bed in.

Clarity is also needed on how the UK will attract sufficient compliant execution venues, particularly Crypto Asset Trading Platforms (CATPs), and proportionality will be key so that we have a broad enough range of providers (encompassing custody, trading, stablecoin, staking etc) authorised onshore to allow for core business services.

Ultimately, it will be the end of an era: of offshore provision, of start-up style business processes, and of unregulated business models. What’s now urgently needed is the UK-compliant infrastructure and the UK routes to market that can accommodate new levels of operating obligations.

That means building out critical UK partner infrastructure to provide businesses of all types with a continued gateway to the scaling UK cryptoasset market. We see that as the real bridge to uniting UK regulatory oversight and consumer trust with international competitiveness and connectivity to the global cryptoasset ecosystem.

With the right government and regulatory support for their business models, UK companies like Zumo are poised to provide firm foundations for the maturing UK crypto industry. The APPG will continue to host further sessions throughout the year ahead, and we look forward to working with all stakeholders to deliver the government’s stated ‘UK crypto hub’ ambitions.

Contact us today to understand how Zumo can support your UK operations roadmap.