Crypto Regulations in the United Kingdom 2025

Key Points

1. Key regulatory developments in 2025 include FCA proposals on stablecoins and custody, Bank of England's stance on stablecoins, and amendments to the Financial Services and Markets Act 2000.

2. The Financial Conduct Authority (FCA) is the main regulatory body overseeing cryptoassets, ensuring compliance with AML and CTF standards, with HM Treasury and the Bank of England also playing significant roles.

3. Crypto taxation in the UK includes Capital Gains Tax (18%-24%) and Income Tax (0%-45%), with specific reporting requirements for taxable events like selling, trading, mining, and staking.

4. Crypto licensing rules mandate that all firms serving UK retail customers must be licensed, meet transparency and governance standards, and comply with AML/CTF regulations.

5. The UK has over 23 million crypto users with a 35.12% adoption rate, leading in crypto adoption compared to the US and France, and is projected to generate over $1.6 billion in revenue in 2025.