“The existing AML registration process with the FCA, which is much more limited, is already incredibly demanding, with the FCA rejecting or forcing the withdrawal of over 85% of applications,” he said in an emailed comment. The new framework introduces substantially broader requirements covering consumer rights, prudential standards, operational resilience and senior management accountability.
Cattee also warned companies not to delay applications, pointing to the launch of MiCA in Europe, where many companies waited until deadlines approached, creating licensing bottlenecks that left some companies without authorization in time.
However, for institutional investors, the new framework represents more than just a crypto rulebook.
Sandy Jones, head of digital assets at Baillie Gifford, said the regulation does not automatically make cryptocurrencies more secure, but it provides the legal certainty and governance standards necessary for traditional financial institutions (TradFi) to adopt blockchain-based infrastructure.
“The underlying technology is powerful, but it alone does not create a direct path to major financial markets,” Jones said. “There is a need for legal clarity, operational resilience, adequate governance and rules that investors and institutions can recognise.”
Jones also welcomed the FCA’s recent improvements to its stablecoin regime, arguing that they create a robust settlement infrastructure without imposing unnecessary operational friction.
Industry responses suggest that the FCA has deliberately positioned the UK as a commercially pragmatic alternative to Europe’s MiCA regime. But whether that translates into businesses choosing Britain over other jurisdictions will depend less on the ambition of the framework than on how predictable its implementation is in the coming months.
