FCA and Bank of England ease stance on digital assets, signaling broader institutional acceptance
UK Crypto Market Gains Momentum
The United Kingdom is showing fresh optimism toward the digital asset sector as KR1, a leading British crypto staking firm based on the Isle of Man, prepares to shift its listing from the small-cap Aquis exchange to the London Stock Exchange (LSE). The move, expected to finalize next month, marks a major step for the country’s crypto industry as regulators adopt a friendlier approach to blockchain-based enterprises.
KR1’s co-founder Keld Van Schreven described the decision as “a starter gun for this new asset class on the LSE,” expressing confidence that other digital asset firms will soon follow suit. With a market capitalization of £56 million (approximately $75 million), KR1 stands out as the first authentic digital asset company to list on the LSE — distinguishing itself from firms merely holding Bitcoin or other crypto assets.
Expanding Institutional Access to Crypto
Founded in 2014, KR1 has built a diverse portfolio of over 100 blockchain investments, generating consistent income through staking assets like Ether (ETH) and Polkadot (DOT). Van Schreven emphasized that the company is “doubling down on staking” as the market matures and institutional interest rises.
The listing aligns with the Financial Conduct Authority’s (FCA) recent decision to allow crypto exchange-traded products (ETPs) on the LSE — a move seen as a breakthrough for regulated crypto exposure in the UK. The FCA also confirmed that a comprehensive digital asset regulatory framework will roll out in 2026, providing clarity and stability for institutional investors.
Bank of England Revises Stablecoin Limits
In a parallel development, the Bank of England (BoE) is reconsidering its earlier plan to cap corporate holdings of stablecoins. Initially, companies were limited to £10 million, while individuals faced a £20,000 threshold. Regulators now plan to allow exemptions for firms that require larger fiat-pegged reserves — a decision reflecting the UK’s ambition to stay competitive against evolving global frameworks like the US GENIUS Act.
While KR1 looks to scale up, other crypto players are restructuring. Argo Blockchain, one of the UK’s few listed mining firms, announced its delisting from the LSE, transferring control to creditor Growler Mining but keeping its Nasdaq listing active.
This reshuffling underscores a new phase of consolidation and regulation within the UK’s crypto market — one that could set the stage for broader institutional adoption and sustainable growth in digital assets.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.