UK FCA Unveils Crypto Framework on July 4, Allowing Overseas Platforms But Imposing Strict Approval Requirements

According to Coindesk, the UK Financial Conduct Authority (FCA) published its comprehensive crypto asset regulatory framework on July 4, opening the market to overseas trading platforms while maintaining strict compliance standards. The framework allows international exchanges to establish authorized local branches serving UK users and access global trading pools, departing from the EU's regional isolation model under MiCA. Non-UK-issued stablecoins may also legally circulate.

However, significant uncertainties remain. The FCA has not yet defined which overseas jurisdictions meet "equivalent regulatory protection" standards, affecting institutional deployment decisions. DeFi rules are incomplete, raising concerns about potential restrictions on platform-DeFi integration. On compliance, lawyers warn that crypto authorization under new financial services law faces extremely stringent standards, with historical data showing FCA anti-money laundering registration approval rates below 15%. The framework requires comprehensive consumer protection, capital adequacy, operational resilience, and management accountability measures.