The UK’s top financial regulator has eased elements of its landmark cryptocurrency rules, providing relief to firms navigating the new compliance landscape.

The Financial Conduct Authority announced adjustments to its cryptoasset regime, scaling back certain requirements that had drawn significant industry pushback, reports the Financial Times.

The changes aim to balance investor protection with fostering innovation in the digital asset sector.

Details of the modifications include relaxed thresholds and streamlined reporting obligations for certain crypto activities.

The regulator cited extensive consultation with market participants as informing the final approach.

Industry observers view the move as a pragmatic step to avoid overly burdensome rules that could drive activity offshore.

The updated framework is expected to take effect in coming months.

Bitcoin and other major cryptocurrencies traded in a narrow range following the announcement, with limited immediate price reaction.

Generated Image: Midjourney