FCA Puts Net Benefit of Its Crypto Regime at Just GBP 120 Million

The UK Financial Conduct Authority (FCA) expects its new cryptoasset regime to generate a net benefit of just GBP 120 million. FM Intelligence said today (Tuesday) its analysis found GBP 1.435 billion in modeled benefits against GBP 1.315 billion in costs over a 10-year appraisal period.

That margin equals 9.1% of the total cost base. These figures are not invoices that crypto firms will pay. They are FCA estimates expressed as present values in 2026 prices, discounted at 3.5%, for a regime due to start on October 25, 2027.

For the 325 firms the FCA expects to fall under the new rules, how that GBP 120 million figure was built matters more than the total itself.

A full breakdown of the FCA's cost-benefit case published by FM Intelligence shows that more than half of the benefit side rests on a single assumption about what consumers value in stronger protection.

A Single Assumption Decides the Math

The largest benefit in the FCA's model is not an observed drop in fraud or losses. It is GBP 735 million assigned to the value consumers place on stronger regulatory protections, or 51.2% of all modeled benefits.

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