The UK cryptoasset market is entering an important new chapter. The sector has moved from calling for legal certainty and regulation to engaging in sandboxes, roundtables, parliamentary debates and responding to discussion papers and calls for evidence. Today the focus shifts from policy to delivery and firms must show how they will build and scale their businesses within the incoming UK cryptoasset regime.

Traditional finance is increasingly exploring and building out their digital capacities within their heavily regulated frameworks. Crypto-natives are entering a new regulated world. Some are regulated in other jurisdictions and have spent many years preparing for this moment, others will have a longer road to walk over the next 5 months to adapt to being a UK regulated business. It is a marathon, not a sprint. 

If we are to learn from the MiCAR experience, where around 75% of applications have reportedly been rejected, it is the importance of understanding the requirements and using the available time to structure the business around them.

The message is simple: being “ready, willing and able” requires preparation and that preparation needs to start well before the application itself is made.

We are excited to continue the journey with our clients and over the next five months to help them navigate the incoming regulatory frameworks with confidence and cost certainty.