UK FCA Outlines Roadmap for Crypto Regulation
The United Kingdom has made a significant move towards a clear crypto regulatory framework. On Wednesday, the FCA released a consultation paper on how established financial rules should apply to crypto companies that operate in the UK.
The rules are designed to promote innovation and competitiveness while protecting consumers and ensuring the integrity of the market.
David Geale, FCA’s Executive Director of Payments and Digital Finance, stated:
“We want to build a sustainable and competitive crypto sector that balances innovation with market integrity and trust.”
Geale emphasized that while it is impossible to eliminate all risks in crypto investing, they can be reduced through clear standards to ensure transparency.
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FCA’s Proposed Crypto Standards
The consultation paper outlines several key proposals:
- Crypto firms need to comply with an operational resilience standard similar to banks and traditional finance firms.
- The FCA wants firms to provide “good outcomes” for customers, considering applying the UK’s Consumer Duty rules.
- The regulator is seeking views on whether crypto-related complaints should go to the Financial Ombudsman Service.
The FCA will accept feedback until October and November, expecting to finalize the crypto regulations in 2026.
In April, His Majesty’s Treasury published draft legislation bringing crypto exchanges, dealers, and agents within the scope of regulation similar to traditional finance. The government stance is: “open for business, closed to fraud.”
UK and U.S. Collaboration on Digital Asset Oversight
The UK is aiming to cooperate more with the United States. On Monday, UK Chancellor Rachel Reeves and U.S. Scott Bessent spoke about working together to oversee digital assets. The discussions include firms like Coinbase, Circle, Ripple, Barclays, and Citi.
Conclusion: UK on Track for Advanced Crypto Regulation
If these measures are adopted, the UK will become one of the most advanced jurisdictions for crypto regulation, offering clarity for businesses and stronger protections for consumers.
