The Financial Conduct Authority (FCA) has launched a consultation on new rules aimed at improving business practices among crypto firms operating in the UK.
The proposals seek to align cryptoasset activities with existing standards applied to traditional financial institutions, including governance, operational resilience, and controls to combat financial crime.
David Geale, the FCA’s executive director of payments and digital finance, said the proposals aim to foster a “sustainable and competitive crypto sector,” while acknowledging that they will not eliminate investment risks. “Our proposals will help firms meet common standards so consumers have a better idea of what to expect,” he said.
Outlined in Consultation Paper CP25/25, the FCA’s plans would extend its handbook to cover regulated cryptoasset activities, as defined in HM Treasury’s draft legislation published in April.
The regulator is also inviting views on how its Consumer Duty—requiring firms to deliver good outcomes for consumers—should apply to the crypto sector. Additionally, the FCA is exploring whether complaints should be eligible for referral to the Financial Ombudsman Service.
Currently, the FCA’s oversight of cryptoassets is limited to financial promotions and anti-money laundering measures. The proposed expansion would require firms to seek authorisation before conducting regulated cryptoasset activities, with rules covering senior management accountability, ESG standards, and product governance.
The FCA will host a series of engagements to gather stakeholder feedback, as it works to shape a regulatory regime that balances innovation with market integrity and consumer protection.
The consultation is open until 12 November 2025, with a separate discussion paper on Consumer Duty and redress mechanisms closing on 15 October. Final rules are expected in 2026.
