The essence of this matter is: the UK wants to comprehensively tighten compliance regulation of crypto assets, not to ban coins, but to focus on illegal use, crack down on money laundering channels, and bring crypto trading thoroughly into the regulatory system.

The focus is not on "coins,"
but on "criminal behavior + capital flow."
What is actually being targeted are: non-KYC platforms, mixers, cross-border underground banks, OTC money laundering channels,
not: compliant trading of BTC/ETH or regular buying and selling by ordinary investors.
The real mid- to long-term impact on the crypto industry: positive.
Clear regulation = institutions dare to enter, compliance process accelerates, sources of funds become cleaner, market becomes more standardized.
Historical experience: after each round of strict regulation, there is initial turbulence followed by a bullish run.
Short term: bearish sentiment.
Common chain reaction: news released → market fears small coins, MEMEs are the first to dump, leverage positions are liquidated $BTC $ETH God of Bollinger Bands Not God of Bollinger Bands