The United Kingdom is moving closer to a fully regulated crypto market as the Financial Conduct Authority (FCA) launches the final stage of its consultation on how Consumer Duty rules should apply to cryptoasset firms. The initiative aims to strengthen customer protection while allowing innovation in digital assets to continue.
The FCA is seeking industry feedback by March 12 on proposed guidance covering crypto businesses operating in the UK. As part of the broader regulatory rollout, the regulator plans to open an application gateway for cryptoasset permissions in September 2026. Under the new framework, all crypto service providers — including those already registered under money laundering regulations — will be required to gain full authorization by October 2027.
The Consumer Duty sets a high standard for how firms treat retail customers. Crypto companies will be expected to act in good faith, avoid foreseeable harm, and support customers in achieving financial goals. This includes providing clear information, transparent pricing, and appropriate support throughout the entire customer journey, not just at onboarding.
The FCA emphasized that regulation is designed to set minimum standards, not eliminate investment risk. While crypto firms must ensure better consumer outcomes, investors will still be responsible for understanding the inherent volatility of digital assets.
The consultation applies to firms planning regulated crypto activities under legislation introduced in December 2025. With authorization requirements now clearly defined, the UK’s path toward comprehensive crypto oversight is becoming firmly established.
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.