UK Regulator Weighs Easing Rules for Crypto Firms, Says FT.

September 17, 2025 – The UK Financial Conduct Authority (FCA) is considering a plan to waive certain regulatory requirements for cryptocurrency companies, according to a report by the Financial Times.

The proposal is aimed at making Britain a more attractive hub for digital asset businesses at a time when global competition for crypto innovation is intensifying. By relaxing some compliance obligations, the FCA hopes to encourage established firms to set up operations in the UK while supporting homegrown startups.

The plan comes as the government advances its broader strategy to position London as a leading financial center for blockchain and digital assets. However, the approach could spark debate over how to balance innovation with consumer protection and market stability.

Analysts say lighter-touch regulation could help the UK compete with jurisdictions such as Dubai, Singapore, and Hong Kong, which have already implemented crypto-friendly frameworks. Still, critics caution that easing rules too far could expose investors to higher risks in a volatile and often opaque sector.

The FCA has not provided details on which rules might be waived, but discussions are expected to focus on areas such as licensing, reporting, and capital requirements. Market participants are awaiting further clarity as the regulator finalizes its next steps.