FCA Outlines Digital Innovation Strategy for Upcoming Year

According to Foresight News, the Chief Executive Officer of the UK's Financial Conduct Authority (FCA), Nikhil Rathi, has detailed the agency's digital innovation strategy for the coming year in a letter to Prime Minister Keir Starmer. The FCA's objectives for 2026 include finalizing regulations for digital assets and advancing the issuance of a pound sterling stablecoin. The FCA is currently collaborating with the Bank of England to develop comprehensive regulatory guidelines covering stablecoins, trading platforms, lending, staking, and custody, with implementation expected by 2026. The UK has adopted a phased approach to cryptocurrency regulation, aiming to balance innovation with consumer protection. Recently, the FCA opened a regulatory sandbox for local stablecoin issuers wishing to test their solutions. The deadline for applications to this sandbox is January 18.