Experts are warning that jurisdictional infighting between the FCA, HM Treasury, and other UK bodies is slowing the regulatory clarity needed to make the UK a credible global crypto hub. Political blockers and unclear ownership of crypto regulatory mandates are frustrating firms trying to plan compliance programs ahead of concrete rule publication.
For Armada's crypto repo desk, the ambiguity matters if any counterparties are UK-domiciled or if Fireblocks has operational touchpoints requiring FCA authorization. Delayed UK crypto rules also complicate collateral eligibility determinations for digital assets held in UK-regulated custody. Legal and compliance should track FCA publication timelines and avoid assuming UK regulatory certainty in near-term counterparty onboarding.