UK FCA to recover $8 million in costs via fees placed on stablecoin issuers, custodians

The UK Financial Conduct Authority (FCA) has revealed its plans to recover approximately $8 million in costs associated with the supervision of stablecoins and cryptocurrencies. In order to achieve this, the FCA will impose fees on stablecoin issuers and digital asset custodians, with the majority of the funds being retrieved from stablecoin regulations and a wider regime, totaling around $7.9 million. An additional $254,400 will be recovered for extending the financial promotions perimeter. These fees will contribute to the FCA’s overall annual funding requirement of $960 million. The recovery of costs is outlined in the agency’s 12-month business plan, which includes various other regulatory objectives such as the establishment of a market abuse regime for digital assets and gauging the impact of AI on markets. The FCA’s drive towards stablecoin regulations began in November 2023, and the extension of market abuse rules to the crypto sector has been under consideration since February 2023. The FCA has already implemented financial promotions regulations in the crypto sector, resulting in some firms exiting the UK market due to compliance difficulties.