The UK’s financial watchdog is moving into the final stage of consultation on a wide-ranging set of proposed rules for the cryptocurrency sector, as work continues on the government’s wider crypto regulation roadmap.
The Financial Conduct Authority is seeking feedback on 10 proposed crypto regulations, describing the move as the “final step” in its consultation process on how the sector should be regulated in the UK.
“These proposals continue our progress towards an open, sustainable and competitive crypto market that people can trust,” the FCA said.
“At the same time, risks remain, and we want a market where innovation can thrive, but where people understand the risks. But regulation can’t — and shouldn’t try — to get rid of all risk. We want those interested in investing in crypto to understand that risk.”
The proposed rules span a broad range of crypto activity, including standards of business conduct, credit-based crypto purchases, regulatory reporting requirements, safeguarding of assets, and the treatment of retail collateral used for borrowing crypto. The watchdog has set a deadline of 12 March for responses.
The package was first outlined in December, when the FCA signalled its intention to regulate the crypto sector more closely in line with traditional financial services. The regulator said it has since made “significant progress” in developing the detail of the framework in line with government policy.
Earlier this month, the FCA also published an indicative timeline for the introduction of a new licensing regime for crypto asset service providers operating in the UK.
“We expect the application period will open in September 2026,” the FCA said, adding that the timetable would be confirmed at a later date.
Under the planned regime, crypto firms would face tighter oversight and be required to obtain authorisation from the Financial Conduct Authority in order to operate in the UK, bringing the sector under closer regulatory supervision for the first time.