FCA launches consultations on UK crypto rules

The FCA is consulting on a raft of proposals for UK crypto rules in line with new government legislation requiring crypto firms to be regulated by the watchdog in the same way as other providers of financial products.

Yesterday (15 December) the Treasury announced plans to make the UK a global destination for digital assets and attract more investment.

Chancellor of the Exchequer Rachel Reeves said: “By giving firms clear rules of the road, we are providing the certainty they need to invest, innovate and create high skilled jobs here in the UK, while giving millions strong consumer protections, and locking dodgy actors out of the UK market.”

Currently, crypto is largely unregulated, with the exception of financial promotions and financial crime.

The FCA’s proposals, published today (16 December) take a similar approach to crypto as the regulator takes to traditional finance, stipulating clear information for consumers, proportionate requirements for firms, and flexibility to support innovation.

The FCA is consulting on:

• Admissions and disclosures – Rules for listing cryptoassets and what firms must tell investors, so people have the facts before they invest.
• Market abuse – Measures to stop insider trading and manipulation, so markets are fair.
• Cryptoasset trading platforms – Standards for exchanges to keep trading safe and reliable.
• Intermediaries – Requirements for brokers and other middlemen, so they act responsibly.
• Staking – Making sure the risks are clear when firms offer staking – a service that lets investor lock up their crypto for a reward.
• Lending and borrowing – Rules to protect both crypto lenders and borrowers.
• Decentralised finance (DeFi) – DeFi lets people trade, lend and borrow using crypto without a middleman. We’re asking if the same rules that apply in traditional finance should also apply here.
• Prudential requirements – Financial safeguards for firms, so they can better manage risk.

David Geale, executive director for payments and digital finance at the FCA, said: "Regulation is coming – and we want to get it right. We’ve listened to feedback, and now we’re setting out our proposals for the UK’s crypto regime.

"Our goal is to have a regime that protects consumers, supports innovation and promotes trust. We welcome feedback to help us finalise these rules."

The FCA is seeking feedback on three consultation papers – CP25/40, CP25/41 and CP25/42 – by 12 February 2026.