UK financial regulator plans to impose larger fines, with crypto firms in the crosshairs

Britain’s Financial Conduct Authority is preparing to ratchet up its enforcement strategy in 2026, with larger fines, faster investigations, and a willingness to publicly name companies under scrutiny.

The numbers tell the story. FCA penalties exceeded £186 million during the 2024-2025 period, a staggering increase from just £42.6 million the year prior.

A regulator with momentum

The FCA’s newfound aggression follows a successful legal battle in which the regulator defended its practice of publicly identifying firms under investigation. A High Court ruling validated the approach, essentially handing the FCA a green light to keep naming and shaming.

The largest single fine of 2025 landed on Nationwide, which was hit with a £44 million penalty. That figure alone would have represented more than the FCA’s entire penalty haul from the prior year.

Historical context adds another layer. Total fines peaked at nearly £200 million between 2022 and 2023, then dropped sharply before roaring back.

Crypto is explicitly on the list

The FCA’s Enforcement Watch, which outlines priority areas for scrutiny, explicitly includes unauthorized crypto services alongside consumer investment management and individual responsibility.

The UK’s financial promotions regime, which went into effect for crypto in late 2023, gave the FCA a new set of teeth. Firms that promote crypto products to UK consumers without approval now face a clear enforcement pathway.

Anti-money laundering compliance is another area where the FCA is sharpening its focus. Crypto firms registered under the UK’s Money Laundering Regulations have faced intense scrutiny, and the regulator has historically rejected a significant proportion of applications from crypto businesses seeking to register.

What this means for investors and firms

Some tribunals have pushed back on the FCA by decreasing penalty amounts in certain cases, which suggests the regulator’s approach isn’t entirely unchecked.

Traders and investors watching the UK market should pay close attention to which firms get named publicly in the coming months. Those announcements will serve as leading indicators of where the FCA sees the biggest risks, and by extension, where the next round of major fines is likely to land.