The UK’s financial watchdog is seeking public feedback
on how far its existing rulebook should stretch into the fast-moving crypto
sector. The consultation marks another step in the government’s plan to bring
digital assets under a formal regulatory regime.
Expanding the FCA’s Reach
The Financial Conduct Authority (FCA) has launched a consultation
paper to examine how existing provisions in its handbook would apply to firms
carrying out regulated crypto asset activities. The move comes as HM Treasury
prepares legislation to introduce a new framework for the sector.
Digital assets meet tradfi in London at the fmls25
At present, FCA oversight of crypto is limited to
financial promotions and anti-money laundering requirements. The regulator now
plans to broaden its remit, covering areas such as governance, operational
resilience, financial crime controls, and environmental, social, and governance
standards.
The consultation also seeks views on how crypto firms
should meet the Consumer Duty, a requirement that financial services providers
act to deliver good outcomes for retail clients. Other areas under discussion
include the Conduct of Business Sourcebook, product governance rules, and
access to the Financial Ombudsman Service.
Under the proposals, companies would need to apply for FCA authorization before conducting regulated crypto asset activities in the
UK. The regulator argues this will ensure higher standards and greater consumer
protection.
Building Trust Through Oversight
The consultation highlights the regulator’s aim to
balance innovation with market integrity. By extending established standards to
crypto firms, the FCA seeks to create a more sustainable environment for
digital assets while addressing risks linked to financial crime and business
failures.
The proposals affect a wide range of stakeholders,
including crypto firms, industry groups, auditors, advisers, consumer
representatives, policymakers, and academics.
The FCA is inviting comments on discussion chapters of
the paper by 15 October 2025 and feedback on the full proposals by 12 November
2025. The outcome will shape the regulatory landscape for crypto assets once HM
Treasury’s legislation takes effect.
The UK’s financial watchdog is seeking public feedback
on how far its existing rulebook should stretch into the fast-moving crypto
sector. The consultation marks another step in the government’s plan to bring
digital assets under a formal regulatory regime.
Expanding the FCA’s Reach
The Financial Conduct Authority (FCA) has launched a consultation
paper to examine how existing provisions in its handbook would apply to firms
carrying out regulated crypto asset activities. The move comes as HM Treasury
prepares legislation to introduce a new framework for the sector.
Digital assets meet tradfi in London at the fmls25
At present, FCA oversight of crypto is limited to
financial promotions and anti-money laundering requirements. The regulator now
plans to broaden its remit, covering areas such as governance, operational
resilience, financial crime controls, and environmental, social, and governance
standards.
The consultation also seeks views on how crypto firms
should meet the Consumer Duty, a requirement that financial services providers
act to deliver good outcomes for retail clients. Other areas under discussion
include the Conduct of Business Sourcebook, product governance rules, and
access to the Financial Ombudsman Service.
Under the proposals, companies would need to apply for FCA authorization before conducting regulated crypto asset activities in the
UK. The regulator argues this will ensure higher standards and greater consumer
protection.
Building Trust Through Oversight
The consultation highlights the regulator’s aim to
balance innovation with market integrity. By extending established standards to
crypto firms, the FCA seeks to create a more sustainable environment for
digital assets while addressing risks linked to financial crime and business
failures.
The proposals affect a wide range of stakeholders,
including crypto firms, industry groups, auditors, advisers, consumer
representatives, policymakers, and academics.
The FCA is inviting comments on discussion chapters of
the paper by 15 October 2025 and feedback on the full proposals by 12 November
2025. The outcome will shape the regulatory landscape for crypto assets once HM
Treasury’s legislation takes effect.
