The UK’s Financial Conduct Authority (FCA) on December 16 launched a broad consultation seeking industry and public views on new crypto regulations, marking a major step toward a formal regulatory regime for digital assets. The proposals aim to create an open, sustainable and competitive crypto market that people can trust, while recognising that regulation cannot eliminate all investment risks. Consultation responses are open until February 12, 2026.
The FCA’s proposals are structured around established financial-market principles, applying similar approaches used in traditional finance to the crypto sector. They include rules on admissions and disclosures for cryptoasset listings to ensure investors have clear information, and market abuse measures to combat insider trading and manipulation.
The consultation also targets crypto trading platforms with new standards to improve safety and reliability, and sets out requirements for intermediaries such as brokers to act responsibly. Proposals extend to staking services, where firms will need to clearly disclose risks associated with locking customers’ digital assets for rewards, and lending and borrowing activities to protect both sides of transactions.
A notable inclusion is decentralised finance (DeFi), with the FCA asking whether the same rules that apply in traditional finance should also govern DeFi activities that facilitate trading, lending and borrowing without intermediaries. The consultation further proposes prudential requirements to strengthen the financial resilience of firms that will need authorisation under the new regime.
FCA Executive Director for Payments and Digital Finance David Geale said the regulator has listened to earlier feedback and now sets out its proposals to balance consumer protection, innovation and market trust. The consultation builds on earlier FCA discussion papers and aligns with recent government legislation designed to bring crypto firms into the regulated financial system.
While much of the UK crypto market remains largely unregulated aside from financial promotions and anti-financial crime rules, these proposals represent a significant step toward a full rulebook expected in the build-up to the statutory regime scheduled for implementation in October 2027. Firms are being supported in meeting standards and preparing for registration as the FCA continues its roadmap toward comprehensive oversight.