The UK's Financial Conduct Authority (FCA), the country's main financial watchdog, has announced sweeping new regulations for cryptocurrency firms operating in Britain, marking the first time a comprehensive regulatory framework has been applied to the sector. Under the new rules, crypto companies will be required to hold capital reserves against risky assets, conduct annual self-directed stress tests to prove they can withstand market shocks, and demonstrate stronger consumer protections. The regulations, which come into force in October 2026, aim to curb harmful practices in an industry that has seen rapid growth driven partly by social media promotion, though regulators caution that investment risks for consumers have not been eliminated entirely.