FCA’s Geale on Crypto Rules and AI Liability
In Miami, far from the UK’s shores, FinTech Futures connected with David Geale, an executive at the Financial Conduct Authority (FCA) and managing director of the Payment Systems Regulator (PSR), during last week’s Sibos conference. The interview came as the FCA recently opened applications for crypto firms seeking authorization under its new regulatory framework. The application window runs from 30 September 2026 to 28 February 2027, preceding the full implementation of the cryptoasset regime on 25 October 2027.
FCA’s Crypto Regulatory Approach
Geale, the FCA’s executive director for consumers, payments, and competition, emphasized the regulator’s commitment to supporting crypto and stablecoin firms in the UK. “We want crypto and stablecoin firms to succeed in the UK. That’s our primary aim,” he stated. The new framework prioritizes consumer protection, market integrity, innovation, and trust, offering a consistent, end-to-end process for crypto activities. Unlike jurisdictions such as the EU’s MiCA, the UK employs an activity-based model. “We start from a position of understanding the crypto activities that you’re doing, and then we build the regulation up from there,” Geale explained.
It has studied global standards, including MiCA and U.S. developments, aiming for a UK-specific regime that is proportionate and competitive. Geale asserted that the FCA is “aligned with international standards” and does not intend to diverge significantly from approaches in Europe or the U.S. “This is international,” he said. “We’ve delivered clear, predictable rules that give a consistent framework.”
Agentic AI and Regulatory Challenges
The conversation shifted to agentic AI, a key topic at Sibos. Geale called it a “massive opportunity… but also potentially a threat,” highlighting unresolved regulatory questions around liability. Critical issues include determining responsibility when AI agents interact with each other. Geale highlighted unresolved regulatory questions around liability, such as determining responsibility when AI agents interact with each other, asking where digital verification is done and who is responsible if something goes wrong. The severity of harm would guide regulatory strategies, ranging from low-value purchases to high-risk scenarios like debt or binding contracts.
Geale noted that the FCA’s existing frameworks, including the Senior Managers and Accountability Regime and Consumer Duty, are outcome-focused and adaptable to AI. “The basic framework, I think, is there,” he said, adding that new regulations may not be necessary if existing tools address the core concerns.
Immediate Priorities and Open Finance
Geale emphasized the FCA’s focus on the ongoing application window. “We want firms to come in early. We want firms to use our pre-application support service, and that will make things as smooth as possible,” he stressed. The regulator aims to finalize preparations before the end of this year and into early next year. Simultaneously, advancing open finance remains a priority, with Geale stating that progress on account-to-account payments and infrastructure renewal is laying the groundwork for next year’s initiatives involving open finance.
As a regulator, we can’t develop good policy in a vacuum. We need to know what’s going on… to be at the centre of that, is absolutely critical to making sure that the UK stays on top of its game in policy making and regulation.
National Payments Vision and Infrastructure
Geale highlighted progress within the UK’s National Payments Vision. Account-to-account payments infrastructure has advanced significantly. The FCA is collaborating with the Bank of England on infrastructure renewal. This work supports the transition from theoretical planning to practical implementation of open finance initiatives. Industry partnerships are essential for modernizing payment systems and ensuring resilience.
By reducing friction, getting payments moving more quickly, more safely, and preventing fraud, the integration of open finance and stablecoins presents a fantastic opportunity, Geale concluded.
Global Regulatory Alignment
Geale reaffirmed the FCA’s commitment to aligning UK regulations with international standards. The framework draws from global benchmarks like the EU’s MiCA and U.S. regulatory developments. Maintaining proportionate and competitive rules ensures the UK remains attractive to crypto and stablecoin firms. “What we’ve tried to do is design what’s right for the UK while being proportionate and focusing on competitiveness,” Geale stated, highlighting the interconnected nature of global financial markets.
Read Also: GLAS Hires Ex-Temenos Exec to Lead AI Integration
At Sibos, the FCA engaged with industry stakeholders to refine its approach. Geale stressed that policy development requires input from global trends and real-time discussions. “We can’t develop good policy in a vacuum,” he said, emphasizing the need to stay informed about emerging technologies like agentic AI. Events like Sibos provide critical insights for maintaining the UK’s leadership in financial regulation.
