The UK Financial Conduct Authority (FCA) has announced plans to recover approximately $8 million in costs associated with supervising stablecoins and cryptocurrencies.
According to a press release issued on March 19, the funds will be recovered through fees imposed on stablecoin issuers and digital asset custodians.
The FCA aims to recoup £6.2 million ($7.9 million) related to new stablecoin regulations and a broader regulatory regime. An additional £0.2 million ($254,400) will be recovered for extending the financial promotions perimeter, both falling under the “cryptoasset” category.
In total, the FCA plans to recover £6.4 million ($8.1 million), which will contribute to the agency’s annual funding requirement of £755 million ($960 million).
These efforts are part of the FCA’s 12-month business plan, which includes various regulatory goals for the UK market. This plan also involves establishing a market abuse regime for digital assets and continuing to enforce crypto financial promotions rules.
In addition to crypto regulation, the business plan covers a wide range of regulatory initiatives, including the regulation of digital markets and an evaluation of the impact of AI on financial markets.
Previous developments provide context for the FCA’s current plans. The costs associated with new regulations are likely related to stablecoin regulations pursued by the agency since November 2023.
The forthcoming market abuse regime builds upon rules introduced in 2016, which addressed insider trading, unlawful disclosure, and market manipulation. While initially not directed at the crypto sector, the UK has been considering extending these rules to digital assets since at least February 2023.
The FCA has already implemented financial promotions regulations for the crypto sector, starting in October 2023. Some crypto firms have exited the UK market due to compliance difficulties, while others have been added to a warning list.
The FCA’s efforts to recover $8 million through fees on stablecoin issuers and custodians are part of a broader strategy to regulate and supervise the crypto market in the UK.
