UK FCA Publishes Crypto Asset Regulatory Framework

The UK's Financial Conduct Authority (FCA) has published a regulatory framework for crypto assets, allowing overseas trading platforms to serve UK users through locally authorized branches and connect to global trading infrastructure.

The framework, intended to avoid creating a closed domestic liquidity pool, permits stablecoins issued outside the UK to circulate in the UK market. This approach differs from the European Union's Markets in Crypto-Assets (MiCA) model.

The rules introduce a 'Qualified Cryptoasset Trading Platform' (QCATP) mechanism, which links global exchanges with the UK market and is expected to improve price efficiency and market depth.