The UK Financial Conduct Authority launched a consultation to fold crypto firms into its rulebook. The paper came out on Wednesday, with feedback due in October and November and final rules expected in 2026.
The proposals would cover the whole UK crypto market, and the aim is to protect consumers, cut financial crime and keep the UK competitive.
The FCA plans to apply many of the same rules used in traditional finance while adapting them to the specific risks and business models of crypto firms.
The proposals
The FCA says crypto firms should meet many of the same standards as banks and other financial firms. That includes strong systems and controls, clear senior manager accountability, operational resilience and crime prevention work.
The regulator calls its guiding principle “same risk, same regulatory outcome.” At the same time, the FCA says rules will be proportionate and tailored to how crypto firms actually work.
Scope and standards
Operational resilience is a core part of the plan, and firms would need plans to handle cyber-attacks and outages. Governance and controls would be linked to the Senior Managers and Certification Regime.
The FCA expects most crypto firms to face standards closer to consumer credit firms than banks, since it sees them as lower systemic risks. High-level rules such as integrity and treating customers fairly would still apply, though the FCA says there could be narrow carve-outs for trades between professional members on trading platforms.
Consumer protections
The consultation asks whether the Consumer Duty should cover crypto. It also seeks views on letting consumers take complaints to the Financial Ombudsman Service.
The FCA warns the rules will not remove investment risk, noting they “won’t remove the risks of investing in crypto.” The paper also flags that some cooling-off rights may not fit crypto because of rapid price moves, but it treats that as open for discussion rather than a final decision.
Firms’ and regulators’ roles
The FCA wants firms to raise standards on anti-money laundering and know-your-customer checks. For the past 5 years, UK crypto firms have had to register with the FCA for anti-money-laundering purposes, but the regulator’s powers have been limited.
This consultation would widen the FCA’s reach and give it clearer tools to check systems, test resilience and hold senior managers to account.
International and political context
The proposals follow draft legislation published by HM Treasury in April. The FCA notes it aims to keep UK firms competitive globally while improving safety. The paper comes as transatlantic ties on crypto oversight are being discussed.
The Financial Times reported that UK Chancellor Rachel Reeves and U.S. Treasury Secretary Scott Bessent spoke about closer UK-US cooperation on crypto rules, and that meeting included banks and big crypto firms.
Industry groups are also pushing for stablecoins and tokenisation to be key parts of a UK-US tech bridge.
Balance and caution
The FCA is clear that it wants a sustainable crypto sector. David Geale, the FCA’s Executive Director of Payments and Digital Finance, said: “We want to develop a sustainable and competitive crypto sector, balancing innovation, market integrity and trust.”
The regulator stresses that new rules should cut crime and boost trust while letting innovation continue where it is safe to do so.
The consultation invites comments on a wide set of issues, from operational rules to consumer rights. The FCA plans further work to shape rules on activity-specific matters.
Firms, trade groups and consumer bodies have until October and November to reply. Final rules are expected in 2026 after more detailed consultations.
The FCA’s plan marks a major step toward tighter UK oversight of crypto. It blends many rules used in traditional finance with tweaks for digital assets. The proposals aim to raise standards on resilience, governance and crime prevention while keeping room for new products and services.
Also Read: UK Regulator FCA Unveils Plan To Officially Regulate Cryptocurrency By 2026