Compliance gets heavy – but unlocks UK market opportunities at new scale

The FCA’s long-awaited crypto roadmap will start becoming real-world policy in 2026. In comes investment firm-style financial services regulation, out goes the offshore business model.

Hot on the heels of the regulator’s decision to lift its retail ban on certain crypto ETPs, it’s a watershed moment for the sector. Finally, there will be defined operating rules and the clarity to scale. But it’s also the time providers will have to get serious about setting up regulated presences in the UK.

Well-capitalised, regulated firms will be able to profit from the UK market on a new mass scale, while others will be forced to retreat.

GBP stablecoins make inroads into the heavily dollarised global market

The GENIUS Act has had a profound impact in the US, with estimates suggesting 99% of the total stablecoin market capitalisation is now dollarised. Spurred into action, the FCA and Bank of England have proposed stablecoin rules that will help UK firms tap into this important growth market.

The FCA has firmly set its stall out with a new stablecoin sandbox targeted towards enabling payments innovation. The Bank of England will offer large-scale stablecoin issuers direct accounts – a step taken neither in the EU nor the US in developing their respective regimes – and is preparing now for a future in which stablecoins are used in payments at a systemic scale.

These are bold and differentiated moves that point to the closest convergence of private sector digital assets and public finance seen to date.

Sterling stablecoins will be fully backed, regulated, and issued onshore. Quiet, boring for some, but ultimately transformative for payments.

Crypto becomes a standardised asset class

Just a month after the FCA lifted its ban on retail access to crypto ETNs in October 2025, the London Stock Exchange recorded $280 million in trading volume, ranking it third in Europe behind Xetra and SIX Swiss Exchange.

ETPs will continue to grow their footprint rapidly in line with developing regulatory certainty. They enable investors to gain increased exposure to the price movements of cryptocurrencies without having to worry about custody, with investments physically backed and held across multiple Big Capital custodians.

Expect to see family offices and private wealth managers getting more involved, making crypto a standard part of the investment portfolio.

Recent industry research by broker EXANTE reveals a third of family offices now hold crypto assets, with clearer regulatory regimes in the US, EU, and UK helping to legitimise the sector – and expected to drive allocations ever higher.

Retail apps enter an age of consolidation

Crypto apps will consolidate, driven by increasing regulatory pressures that raise compliance costs and put up barriers to entry. This will result in fewer – but more robust – players.

The maturing crypto market is piquing interest among dealmakers, with fintechs in particular sizing up the sector. In 2025, we saw a number of major deals, including Stripe’s acquisition of stablecoin payment platform Bridge and Robinhood’s purchase of crypto exchange Bitstamp.

Expect to see a spike in M&A activity in 2026, especially among exchanges, brokerages, and other service providers.

The next Coinbase or Revolut? They’re already in the market, waiting. Don’t be surprised, too, to see these super-apps branching out into new forms of payments, tokenised asset holdings, and even non-financial applications.

Recommended reading

• UK Crypto Groups Urge Government to Back Blockchain
• 2025 Is Crypto’s Most Dangerous Year Yet, Chainalysis Warns
• Chancellor Announces New Rules for UK Crypto Firms

Smart companies will build during the bear market

Historically, Bitcoin’s performance follows a four-year cycle, experiencing significant bull runs followed by sharp price corrections. There are typically clear omens for the end of a cycle – presently it’s the proliferation of meme coins that suggests people are running out of ideas, while previously NFTs have been the augur.

The winners in the next cycle will be the firms that have invested and built through the bear market. Revolut, Blackrock, and Binance, for example, have all done it well, launching new products in new markets and deepening liquidity.

Now is the time for ambitious firms to explore the new partnerships that will help them with market entry.