The Financial Conduct Authority (FCA) has intensified its supervision of the UK crypto sector by forming a dedicated enforcement team focused on tackling unlicensed payment service providers and exchanges. Announced on 19 August, the group comprises three full-time employees and twelve external specialists. This step comes alongside stricter anti-money laundering (AML) rules and recent enforcement actions, such as a £3.5 million fine against CB Payments and several arrests linked to illegal activity. [Source]
Since 2020, all UK-based digital asset firms have been required to complete money-laundering checks administered by the FCA. To date, approximately 50 companies have successfully demonstrated compliance, passing the regulator’s criteria for anti-illicit finance measures. Despite this progress, industry reports have highlighted that processing times for applications remain lengthy. The FCA’s new enforcement team is expected to accelerate approvals and strengthen market oversight.
According to the FCA, “the FCA has hired a new team of crypto specialists” to monitor and act against non-compliant operators. Planned regulatory developments include clearer capital and insider rules for stablecoins, with a comprehensive framework anticipated by 2026. These measures seek to support market integrity and protect consumers as interest in digital assets continues to grow.
| Key Developments | Regulatory Impact | Relevant Links |
|---|---|---|
| Formation of FCA crypto enforcement team | Enhanced oversight of unlicensed crypto firms | UK watchdogs and payment tech |
| Stricter AML requirements since 2020 | About 50 digital asset firms compliant | FCA fees for payment firms |
| Upcoming stablecoin regulations by 2026 | Clearer capital, insider dealing rules | Stablecoin regulation update |
In a related context, the Financial Reporting Council (FRC) has maintained its commitment to flexible working policies and recently relocated its offices from Moorgate to Canary Wharf. The FRC management acknowledged the patience of staff during the transition, stating employees needed “saintly levels of patience” while the new site was confirmed.
