The United Kingdom is moving closer to implementing a comprehensive regulatory framework for digital assets as the Financial Conduct Authority (FCA) enters the final stage of consultations on proposed crypto regulations. The initiative forms part of the government’s broader roadmap to align the crypto sector with established financial standards while supporting responsible innovation.
FCA Seeks Final Feedback on Crypto Market Standards
The FCA has opened a consultation on 10 key regulatory proposals, describing this step as the final phase before formal rules are drafted. The proposals aim to apply traditional financial market principles to crypto activities, with a focus on building a market that is both competitive and trustworthy. Regulators emphasized that while innovation is encouraged investors must clearly understand the risks associated with crypto assets.
The proposed rules address multiple areas of the market, including business conduct requirements, credit-based crypto purchases, regulatory reporting, asset safeguarding, and the treatment of retail collateral used for crypto borrowing. The deadline for industry and public feedback is March 12.
As part of the same regulatory roadmap, the FCA confirmed progress toward a new crypto licensing regime. Under the plan crypto asset service providers will be required to obtain FCA authorization to operate in the UK. The regulator indicated that the application window is expected to open in September 2026, subject to confirmation.
This framework is designed to introduce tighter oversight, strengthen consumer protections, and integrate crypto more formally into the UK financial system without eliminating market risk entirely.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.