UK Relaxes Crypto Regulations: KR1's Listing on LSE Signals a New Digital Age

KR1, a British crypto staking company, is on track to become the first "genuine digital asset company" to be listed on the London Stock Exchange (LSE). The firm recently revealed its intention to move from the Aquis exchange to the LSE's primary market, with the transition anticipated to be completed next month, according to

. KR1 co-founder Keld Van Schreven described this move as "the starting signal for this emerging asset class on the LSE," reflecting a broader regulatory shift in the UK toward supporting blockchain innovation. Policymakers are loosening restrictions to help the UK become a leading center for digital finance, as reported by .

The Financial Conduct Authority (FCA) in the UK has already given the green light for crypto exchange-traded products (ETPs) to be traded on the LSE, and regulators are working on a comprehensive digital asset regulatory framework set for 2025, the report noted. Meanwhile, the Bank of England (BoE) is reviewing its limits on how much stablecoin companies can hold, potentially raising the cap from £10 million to allow for larger fiat-backed reserves. These changes are intended to keep pace with international regulatory developments, such as the U.S. GENIUS Act, which offers clearer guidelines for digital asset businesses, according to Cointelegraph.

KR1, established in 2014 and headquartered on the Isle of Man, has a market value of around £56 million ($75 million) and specializes in staking and early blockchain investments. Unlike many crypto companies that mainly hold assets like

, KR1 earns income by staking assets such as (ETH) and (DOT), and has made over 100 investments in digital assets so far, according to Coinotag. Van Schreven highlighted KR1's role in proving that blockchain businesses can thrive under UK regulation, suggesting that more crypto companies may pursue listings on traditional exchanges, as Cointelegraph reported.

This regulatory shift stands in contrast to the difficulties faced by other UK crypto firms. For example, Argo Blockchain, one of the few publicly listed crypto mining companies in the UK, is set to leave the LSE as part of a restructuring that hands control to its main creditor, Growler Mining. The company will keep its Nasdaq listing but must comply with requirements such as a reverse stock split by January 2026, the report added. This contrast illustrates the changing landscape of the sector, where staking and investment-oriented firms are gaining momentum while mining businesses face increasing challenges.

The BoE's revised stablecoin policy, which initially proposed a £10 million cap on corporate holdings, now allows exceptions for companies needing larger fiat-backed reserves. This change, influenced by global competition, is designed to encourage the use of stablecoins in payments and decentralized finance (DeFi) without risking financial stability, according to Coinotag.

As the UK's regulatory framework for digital assets evolves, industry participants are encouraged to keep an eye on upcoming changes expected in 2025. The FCA's supportive approach and the BoE's updated stablecoin guidelines demonstrate a deliberate strategy to foster innovation while managing risks, which could draw more investment into the sector, the analysis concluded.

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