Business

How the FCA’s new crypto regulations will affect the industry

Published

1 month ago

December 12, 2024

The Financial Conduct Authority (FCA) has introduced sweeping new rules aimed at regulating the cryptocurrency sector in the UK. These changes are intended to align crypto businesses with traditional financial standards and increase consumer protection. While the industry continues to expand, these regulations are already reshaping how crypto firms operate in the UK.

The growing role of cryptocurrency in everyday life

Cryptocurrencies are no longer confined to niche communities or speculative investments. They are now deeply integrated into major industries, including finance, technology, and retail. In finance, digital currencies provide investors with an alternative asset class. Blockchain technology, which underpins cryptocurrencies, has become a cornerstone for secure data management in the tech sector.

In industries like iGaming, cryptocurrencies have been widely integrated. For instance, they now represent a whole category of online casinos that provide local players with an option to experience less restrictive sites than the ones regulated by the UK Gambling Commission. With stringent rules on things like betting limits to the mandatory nature of the GamStop program, many players now feel UKGC-regulated platforms are too stifling.

According to iGaming expert Chris Jackson, offshore crypto casinos provide alternative options that aren’t subject to the GamStop program. Among them, the best non GamStop casinos UK players can register with offer a wealth of unique benefits. Between enabling faster payouts, better gaming libraries, and no-KYC registration processes, using crypto as a payment method has truly revolutionised this industry.

On the other hand, many retail businesses have also started to embrace digital payments, offering customers the convenience of using cryptocurrencies to purchase goods and services. This trend is accelerating as people grow more comfortable with digital currencies, highlighting their role in transforming traditional payment methods.

The FCA’s stringent regulatory framework

The FCA’s new regulations mark a significant shift for the UK’s cryptocurrency sector. The rules require firms to meet higher capital standards, ensuring they can cover potential losses. In addition, measures to prevent insider trading and market manipulation are now in place, reflecting the FCA’s commitment to improving market integrity.

Firms must also adhere to stricter rules on custody, safeguarding client assets, and implementing risk management practices. These changes aim to enhance transparency and build trust in the crypto market. The FCA’s approach signals that it wants to ensure cryptocurrency transactions are as safe and reliable as those in traditional financial markets.

The impact on crypto firms

The regulations are creating significant challenges for businesses operating in the crypto sector. Many companies are facing higher operational costs as they adjust their systems and processes to comply with the new standards. Some firms, particularly smaller ones, are struggling to meet the requirements and may decide to leave the UK market altogether.

While larger firms are better equipped to adapt, even they are experiencing increased compliance burdens. The FCA has made it clear that these measures are necessary to protect consumers and uphold market stability, but the short-term effects on businesses are considerable.

Balancing consumer protection and innovation

At the heart of the FCA’s regulatory push is the goal of protecting consumers while promoting a fair and transparent crypto market. The new rules address concerns over financial crime, with firms required to implement robust anti-money laundering controls.

Transparency is also a key focus, with businesses needing to provide clear and accurate information to customers about their operations. These measures aim to foster trust and stability in a market that has faced criticism for its lack of oversight.

However, the FCA’s challenge is to strike a balance between safeguarding users and allowing the industry to innovate. Many in the crypto community fear that overly stringent rules could stifle growth and push businesses to relocate to more lenient jurisdictions. Striking this balance is no small task, as regulators must consider both the rapid pace of technological advancement and the need for robust consumer protection frameworks.

What lies ahead for the crypto industry

The future of the UK’s cryptocurrency industry will depend on how effectively the new regulations are implemented and how the market responds. The FCA has signalled that it will continue refining its approach, with further consultations on consumer protection and market abuse planned for 2024 and 2025. These initiatives highlight a commitment to ongoing dialogue and adaptation as the crypto landscape evolves.

The UK government has also expressed its ambition to position the country as a global hub for digital assets. For this to succeed, regulators and industry players will need to work together to ensure that innovation is not hampered by excessive oversight. Collaboration between policymakers and businesses will be key in fostering a regulatory environment that supports growth while addressing risks.

The coming years will be crucial in determining whether the UK can maintain its leadership in the evolving world of cryptocurrency. The stakes are high, but with a measured approach, the UK has an opportunity to set a global standard.

Business

How to plan financially without sacrificing your usual activities

Published

24 hours ago

January 15, 2025

Staff Writer

Getting on top of your finances can feel daunting, particularly if you have hobbies that you don’t want to sacrifice. The good news is that there are plenty of ways you can save money without having to compromise on your favourite activities.

With that in mind, let’s take a look at a few suggestions that could help you better manage your finances whilst continuing to do the things you enjoy most.

Track your spending

Before making any changes, it’s a good idea to evaluate your current spending. In the age of online banking, regularly checking your bank account couldn’t be easier and doing so can offer you more control over your finances.

Consider going through your current outgoings and finding areas for improvement, such as overspending on groceries or identifying subscriptions you no longer need and cancelling them. You can use tools like budget planners to help track and manage your spending more efficiently.

Use second hand equipment

If your hobbies and interests require equipment, think about purchasing second hand instead of buying brand new. You can use sites such as eBay or Gumtree to find used equipment in good condition. Not only is buying second hand a great way to save money without missing out on the things you need, but it’s also less wasteful and better for the environment!

Make money from your hobby

Plenty of hobbies can be turned into an additional income. If you enjoy creating content online, consider monetising YouTube videos or joining the TikTok creator fund. If your interests involve creating things such as clothes or art, opening a shop on Etsy and selling your pieces is an excellent way to continue pursuing your hobby whilst earning a little extra.

Downsize your hobby

Finally, downsizing your existing hobbies and interests is a great way to reduce the expenses that come with them. If you enjoy exercise, consider working out from home to save money on gym memberships. If you’re learning a new language, utilise free tools and courses.

Alternatively, if gambling is more your scene, think about switching to online gambling. Online gambling sites typically offer more in terms of rewards than traditional brick-and-mortar bookies do. You can utilise sites like AskGamblers who make it easy to find free spin bonuses and sign up offers. Free spins bonuses are a great place to start as a beginner. You can typically use free spins on slot games and still land wins to later withdraw, given you’ve surpassed the wagering requirements.

Saving doesn’t have to be limiting

Cutting back on your spending and saving money doesn’t mean you have to compromise on the things you enjoy. By keeping track of your spending, reducing unnecessary costs, saving on purchases, and even finding ways to make money from the things you enjoy, you can continue to live life to the full whilst improving your finances.

Business

Two Welsh companies feature in the Startups 100 Index 2025

Published

3 days ago

January 13, 2025

Tom Sinclair

RETURNING for its 17th year, Startups.co.uk has unveiled the Startups 100 Index 2025, spotlighting the most promising UK startups. Two Welsh companies, Deploy Tech and PlantSea, have been ranked 47th and 60th, respectively, in the prestigious list.

The Startups 100 Index is the UK’s longest-running showcase of innovative young businesses. It highlights startups demonstrating groundbreaking ideas, strong financials, market opportunity, and a loyal customer base. Previous alumni include household names such as Monzo and Deliveroo.

Recognising Welsh innovation

Both Welsh startups achieved additional recognition in this year’s awards. Deploy Tech won the Startups 100 Social Impact Award, while PlantSea was shortlisted for the Sustainability Award, solidifying Wales’ reputation for entrepreneurial ingenuity.

To mark the launch of the 2025 Index, Startups.co.uk surveyed 531 business leaders, revealing a surge in Welsh business optimism. Seventy-five percent of Welsh businesses expressed confidence in the year ahead—a significant rise from the 58% reported in 2024.

Championing ideas with impact

47. Deploy Tech
“The IKEA of concrete infrastructure for water storage”

Founders: Paul Mendieta and Beren Kayali
Founded: 2020
Award: Winner of the Startups 100 Social Impact Award 2025

Deploy Tech revolutionises water infrastructure with its flat-packed, concrete-filled fabric solutions. These innovative systems are lightweight, easy to transport, and ideal for disaster relief, construction projects, and emergency responses. Collaborations with UNICEF and Oxfam highlight the global impact of Deploy Tech’s work, including earthquake relief efforts in Turkey.

60. PlantSea
“Tackling the UK’s plastic waste problem with seaweed-based packaging”

Founders: Rhiannon Rees, Alex Newnes, and Gianmarco Sanfratello
Founded: 2020
Award: Shortlisted for the Startups 100 Sustainability Award 2025

Inspired by Bali’s pollution crisis, PlantSea develops biodegradable and compostable packaging made from seaweed and plant-based materials. Backed by the Development Bank of Wales, the company is scaling up its efforts to combat plastic waste globally, driving sustainable packaging innovation.

A message from Startups.co.uk

Zohra Huda, Editor of Startups.co.uk, commented: “Who says you need to be born in the capital to succeed? This year’s Startups 100 Index proves that inspiration, innovation, and ingenuity abound in Wales. Deploy Tech and PlantSea are leading the charge, thriving despite the challenges of the post-COVID era and current economic landscape. Watch out, London.”

About the Startups 100 Index

The Startups 100 Index is based on five key criteria: financial health, external validation, market opportunity, innovativeness, and strength of concept. Businesses featured must have launched in the last five years, be privately owned, and be UK-based. A panel of expert judges selects the winners.

For the full list, visit: Startups 100 Index 2025.

Business

£1.4 million now available for Welsh Marine and Fisheries Scheme

Published

3 days ago

January 13, 2025

Tom Sinclair

MORE than £1 million in funding from the Welsh Government is now open to support the marine, fisheries, and aquaculture industry in Wales. The funding aims to drive sustainable growth in the sector while benefiting coastal communities.

***Deputy First Minister for Climate Change and Rural Affairs, Huw Irranca-Davies***

The £1.4 million funding package includes £700,000 for revenue and £700,000 for capital projects. The application window is open for 10 weeks, closing on 24th March, and encompasses a wide range of eligible activities across 11 categories.

What can the funding be used for?
The scheme supports various initiatives, including:

Expanding aquaculture site potential and upgrading vessel equipment to reduce emissions and boost energy efficiency.
Providing professional advice on marine environment sustainability, business development, and marketing strategies.
Funding optional health and safety equipment for onboard and land-based operations.

In the previous funding round, grants were awarded for projects such as ice machines, ice flakers, weighing scales, cool boxes for fishers, vessel modifications to enhance energy efficiency, and marine evidence gathering initiatives.

Encouragement from Deputy First Minister
Deputy First Minister for Climate Change and Rural Affairs, Huw Irranca-Davies, said: “The Welsh Marine and Fisheries Scheme is designed to create opportunities within the marine environment, coastal communities, and sustainable seafood across the entire supply chain, from production to processing and marketing.

“Our aquaculture, marine, and fisheries sector brings many important benefits. It provides a low-carbon, high-quality protein food source, supports future food security, and creates high-skilled jobs.

“I’d encourage those with an interest to take advantage of the funding to explore opportunities for growth, diversification, and innovation. Let’s use this scheme to build a more prosperous, fairer, and greener Wales.”*

Grant details

Maximum grant per application: £100,000
Minimum grant per application: £500

Support for applicants
Free, independent support is available through the Welsh Fisheries Animateur Pilot project, funded by the Welsh Government in collaboration with the Welsh Fishermen’s Association. For assistance, contact The Fisheries Animateur:

Phone: 01736 362782
Text: 07864 087119
Email: [email protected]

Applicants must be registered with Rural Payments Wales (RPW) Online, where the application and claims process can be accessed.

For more details, including guidance, visit the Welsh Government’s website.