How is Grant Thornton supporting the digital assets industry?

2026 is due to be a year of significant change and growth for the digital asset industry, both in the UK market and globally. There are 3 areas that will have a major impact

What does the upcoming UK regulatory regime mean for firms?

The FCA’s new regulatory regime comes into effect from October 2027. We now have clarity on what this regime will look like, the key implications for firms wanting to carry out crypto asset activities, and the requirements for authorisation.

The FCA authorisation window will run from the end of September 2026 until the end of February next year, and all firms serving UK customers will typically be in scope, even if they’re based overseas or are already registered under the Money Laundering Regulations. 

Pre-submission preparation is vital. Firms are expected to have all the necessary plans, arrangements and resources in place to support FCA regulation at the time of submission, and there’s likely to be limited scope for any major changes after this.

What is CARF and how will it affect firms?

The Crypto-Asset Reporting Framework is a new global standard to support the exchange of tax information on crypto between service providers and tax authorities. It was introduced so authorities can ensure the right tax is being paid by individuals and entities that transact in crypto assets.

In the UK, CARF applies to all crypto users that are tax resident in the UK or in another reportable jurisdiction. As a result, reporting volumes are likely to be higher than under equivalent frameworks like the Common Reporting Standard.  When reporting starts in 2027, HMRC will also receive information from global tax authorities in relation to UK tax residents transacting cryptoassets through an overseas provider.

Reporting is conducted at the transaction level, meaning firms must capture and report detailed information such as the type of asset, its value, and the nature of the transaction.

The new rules came into effect in the UK in January this year, with HM Revenue and Customs first reporting deadline being in May next year. 

Whilst the first reporting deadlines may seem distant, the lead time required to implement these requirements is substantial. 

Firms that act early will be better positioned to manage risk, avoid disruption or penalties, and maintain trust with clients and regulators alike

How is combating fraud within the digital asset sector evolving?

We’ve seen crypto, and especially Bitcoin, hit a bear market before, with the assets becoming a less appealing investment option for retail customers. Each time however this has been followed by a substantial growth in values which, whilst great for the industry, has aligned with a rise in the number of people falling victim to scams and frauds. 

With the introduction of clearer regulation globally, the growing maturity of the sector, and mainstreaming of crypto in people’s investment portfolios, now is a great time to ensure that internal AML and financial crime processes are robust and aligned to the size of your business and customer base.

In addition, public private partnerships are exploring new ways to tackle economic crime, and to educate the public on what bad actors in the sector look like. Making the industry safer for those operating in it and building trust with retail users.

Grant Thornton has an extensive digital assets offering, providing support across the industry and for all the above changes. From Tokenisation offerings to cyber resilience, restructuring to disputes, and everything in between, we are working with the industry to help it fulfil its potential whilst remaining robust and resilient.