UK FCA Nears Final Consultation Stage on Crypto Regulation

Jimmy Aki
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On January 23, the UK’s Financial Conduct Authority (FCA) launched its final consultation on how Consumer Duty rules will apply to crypto asset firms, which is part of the country’s effort to move toward a full crypto regulatory regime.

Feedback on these proposals will be accepted until March 12. A new licensing gateway is then scheduled for September 2026. This system is designed to raise industry conduct standards, protect retail consumers, and better align crypto oversight with traditional finance rules.

 

FCA’s Consultation and How It Will Shape UK Crypto Rules

Alongside the Consumer Duty, the FCA is consulting on a broader package of ten regulatory proposals that collectively shape how crypto markets will function in the UK.

These cover business conduct standards, safeguarding of client assets, regulatory reporting, credit-based crypto purchases, and the treatment of crypto used as collateral. The goal is to create a market structure that consumers can trust while maintaining room for innovation.

Under the specific Consumer Duty framework, crypto firms would be legally required to act in good faith, avoid foreseeable harm, communicate risks clearly, and support customers across the full product lifecycle, and not only at onboarding.

The FCA has explicitly stated that regulation does not remove the inherent risks of crypto investing and should not be treated as a guarantee of safety.

The consultations apply to firms planning to carry out regulated crypto asset activities under legislation introduced by the UK Treasury in December 2025.

Moreover, they are also relevant to auditors, advisers, industry bodies, and consumer organizations.

In the near future, crypto asset service providers will be required to obtain full FCA authorization under a new licensing regime. This requirement will apply even to firms already registered under the UK’s anti-money laundering rules.

Companies such as Ripple, which already hold MLR registration, will still need to transition into the new framework, as the new licensing rules are scheduled to take effect in October 2027.

Full FCA Regulatory Oversight for Crypto Firms to Start By October 2027

From October 2027, crypto assets will formally fall under the FCA’s supervision following legislation being drafted by HM Treasury.

Exchanges, wallet providers, and other digital-asset businesses will be regulated in line with traditional financial products, with requirements covering transparency, consumer protection, reporting, and market conduct.

Firms already authorized for other financial services will still need to vary their permissions, while those relying on third-party approvals for promotions must seek direct FCA approval.

Companies that apply on time can continue operating while their applications are reviewed.

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Now that the UK has clarified its stance on crypto, it is moving to tighten its rulebook—aiming to stay competitive with the US and the EU while bringing greater structure to the market.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.