‘We Want Responsible Crypto Firms to Succeed in the UK’: FCA’s Matthew Long

Since the UK’s top financial regulator, the Financial Conduct Authority (FCA), unveiled its proposed crypto regime last week, the industry has been buzzing with debate. Crypto forums, legal experts, and firms across the UK are analysing what the sweeping rules could mean. Many see them as a defining moment for the country’s digital asset market.

To understand it better, Block of Fame sits with Matthew Long, Director of Payments and Digital Assets at the FCA, for whom the framework is about far more than introducing new rules. It represents the beginning of a more mature crypto market built on certainty, trust and sustainable innovation.

The publication of our final rules marks an important milestone for the UK crypto market. Once our rules come into effect in October 2027, I expect we’ll see the market move from a period of uncertainty to one of greater clarity, with firms operating within a clear regulatory framework and consumers and investors having a better understanding of the protections in place,” says Long.

We’ve built a proportionate and competitive regime based on proven regulatory principles, adapted for the realities of crypto markets, giving firms a solid foundation to build and scale with confidence.

What UK’s New Crypto Regime Means

The FCA’s new crypto framework follows over a year of consultation with crypto firms, consumer groups, trade associations and other stakeholders. Following feedback from industry, the UK Financial Conduct Authority (FCA) has made several notable changes to its proposed crypto rules before finalising the regime.

Long, who has worked in FCA’s digital assets division for more than 3 years, believes, “The UK has the opportunity to be a leading destination for crypto businesses, and clear, proportionate regulation is a key part of creating an environment where firms can innovate and grow with confidence.”

As part of changes, the regulator has reduced the capital requirement for qualifying stablecoin issuers from 2% to 1% of the value of stablecoins in circulation,

Further, earlier proposals required some assets to receive 100% capital coverage but final rules require firms to hold capital equal to 40% of net exposure for trading positions instead. It has also eased disclosure obligations for smaller firms, simplified custody and safeguarding requirements.

According to Long, the industry’s next phase will be defined by such regulatory clarity.

These measures are designed to support fairer, more transparent crypto markets. 

For firms and market participants, clear and consistent standards can provide greater confidence in how markets operate. By setting clear expectations around disclosures and market conduct, the framework helps support well-functioning markets that can benefit consumers, investors and firms alike,” says Long.

At the same time, Long is careful to distinguish between improving market standards and eliminating investment risk.

“We can’t regulate away risk – in general, we still see crypto as high-risk investment. However, some crypto, such as stablecoins is now treated differently. This framework creates clearer standards for firms and stronger protections for consumers, helping to build trust in the market over time.”

This is something that European Commission Advisor Peter Kerstens also argued in a Block of Fame piece that regulation must evolve alongside rapidly changing crypto markets rather than remain static.

Crypto Firms Must Start Preparing Now for 30 September

UK’s new crypto framework now requires crypto firms operating in UK to obtain FCA authorisation to operate under the new regime. The applications for authorisation will open on 30 September 2026,

While the framework does not become fully operational until October 2027, Long’s advice to firms is straightforward.

“Start preparing now and engage with us as soon as possible. The authorisations gateway opens on 30 September, firms should use the time now to understand the requirements of the new regime, assess whether they can meet them and identify any gaps that need to be addressed.”

He also encourages firms to make full use of the FCA’s support mechanisms such as PASS during the transition.

 “We’re also encouraging firms to make use of our Pre-Application Support Service (PASS). This free service gives firms the opportunity to engage with us before applying, ask questions and better understand what will be expected of them under the new regime.”

DeFi: Next in UK’s Crypto Regime?

Although the publication of the framework marks a major milestone, Long says implementation is only the beginning. The FCA’s immediate focus is helping firms transition successfully into the new regime while continuing to refine guidance where needed.

Our immediate priority is supporting firms as they prepare for authorisation and helping them understand what will be expected under the new regime. We are already offering pre-application support through our free Pre-Application Support Service (PASS), as well as webinars and other engagement opportunities ahead of the authorisation gateway opening in September.

Beyond implementation, the regulator also plans to turn its attention toward decentralised finance (DeFi).

We will be focussing on our perimeter guidance to clarify feedback we’ve received, and will also look at decentralised finance (DeFi) next.

More broadly, our focus will be on implementing the regime effectively, supervising firms against clear standards and continuing to engage with government, international partners and industry as the market develops. The framework has been developed in close collaboration with HM Treasury, the Bank of England and international partners, and we will continue that engagement as the market evolves. We want to support responsible innovation while maintaining high standards of consumer protection and market integrity.

 ‘We’re Open for Business’

Ultimately, Long believes the FCA’s message to the industry is a simple one: responsible firms have a place in the UK’s digital asset future.

{My} message is simple: we want responsible crypto firms to succeed in the UK. We’ve worked hard to develop a proportionate framework that provides firms with clarity about what is expected of them, while supporting innovation and growth.

We’re open for business, but we’re also clear about the standards firms will need to meet. Firms that engage early, understand the rules and demonstrate high standards of consumer protection and market integrity will be well placed to succeed under the new regime and grow in the UK market.”

Thus, for firms looking to establish long-term operations in one of the world’s leading financial centres, the FCA’s message is equally clear. Prepare early, meet the standards and help shape the next chapter of the UK’s crypto industry.