The UK’s Financial Conduct Authority has opened a consultation on its proposed rules for cryptoasset firms. The consultation marks the final stage in the regulator’s series of proposals for the sector. Responses will be accepted until 12 March 2026.
The FCA recently outlined requirements for firms planning to carry out regulated cryptoasset activities. Applications for authorisation under the Financial Services and Markets Act are expected to open in September this year, ahead of the regime’s launch in October next year.
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Firms must comply with governance, operational resilience, financial crime, and Consumer Duty requirements. Existing FSMA-authorised firms must vary their permissions, while firms currently registered under anti-money laundering or payment regulations will need full authorisation, as “there will be no automatic conversion.”
Scope of the Consultation
The consultation seeks input on how the Consumer Duty, conduct standards, dispute resolution, safeguarding, and other regulatory requirements should apply to cryptoasset businesses. It also covers the treatment of retail collateral in crypto borrowing, the use of credit to purchase cryptoassets, and guidance on where firms should be based.
FCA Objectives
The FCA said the proposals aim to "deliver good outcomes for customers while supporting them to navigate their financial lives" and to maintain a market "where innovation can thrive, but where people understand the risks."
The regulator noted that while it continues to develop the regime following government legislation, crypto remains largely unregulated outside rules on financial promotions and financial crime.
Key Areas in the Consultation
Specific areas addressed in the consultation include the Consumer Duty, which provides guidance to ensure firms deliver fair outcomes for retail customers; dispute resolution rules covering complaints handling and redress; and Conduct of Business Standards, which apply key conduct rules to crypto activities.
Other measures cover credit for crypto purchases, training and competence standards for staff, the categorisation of crypto firms under the Senior Managers and Certification Regime, regulatory reporting requirements, safeguarding rules for custody of specified investment cryptoassets, retail collateral protections, and location policy guidance.
Previous Proposals and Guidance
The FCA said the consultation follows earlier proposals issued in December 2025, which outlined the application of crypto rules in line with traditional finance principles. These included providing clear information to consumers, proportionate requirements for firms, and flexibility to support innovation.
The regulator also highlighted previous consultations on stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term issuance, cryptoasset custody, prudential rules, conduct of business, and market abuse.
