The FCA is launching a consultation asking for views on new proposals as the next step in shaping the UK’s crypto rules.

According to the FCA, these proposals continue their progress towards an open, sustainable and competitive crypto market that people can trust. They released the following details today saying:

We want a market where innovation can thrive, but where people understand the risks. Regulation cannot – and should not – remove all risk. Instead, it should make sure anyone investing in crypto does so with their eyes open.

Our proposals apply a similar approach to crypto as we do in traditional finance: clear information for consumers, proportionate requirements for firms, and flexibility to support innovation.

What we’re 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 you lock up your 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.

These proposals build on feedback from earlier discussions and new research published today. They are aligned with new government legislation laid yesterday and reflect our commitment to getting the balance right.

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.”

We’ve made significant progress in delivering our crypto roadmap and are helping firms meet our standards and become registered while we wait for further legislation.

While we work closely with partners to deliver the UK’s crypto rules, people should remember crypto is largely unregulated – except for financial promotions and financial crime purposes.

Consultation responses are open until 12 February 2026.

Amarjit Singh, EY UK&I Digital Assets Leader, commenting on the FCA’s proposed guidance on the regulation of the UK crypto market, says: “Today’s announcement shows that the Government and regulators have taken collaborative steps to support UK competitiveness in the global crypto market. The decision to take a similar approach in crypto as in traditional finance where possible shows that the FCA has listened to industry calls that, while recognising the unique nature of this new market, a clear, efficient, and familiar route to compliance is preferable to reinventing the wheel. Through the ongoing consultation period, the industry is expected to continue working closely with regulators to ensure clarity is balanced proportionately with risk, and the final rules are readily actionable from Day One.”  

Charlotte Hill, Partner at Charles Russell Speechlys said:

“Once crypto is brought formally inside the FCA perimeter, there is a real risk of a halo effect – consumers may read ‘regulated’ as ‘safe’, even though the FCA is very clear that people can still lose everything.

“This regime reflects political pressure to support growth rather than any reduction in crypto risk. The FCA is trying to bring crypto onshore to control it, but it is doing so without clear guidance from government on how much consumer harm is acceptable.

“Allowing overseas, unauthorised exchanges to target UK institutional investors carries an obvious risk of retail leakage.  In practice, the FCA has struggled to stop illegal retail targeting from overseas crypto firms, and this does not magically disappear under a new regime.

“The danger is not that the FCA is opening the door to fraud, but that it is formalising a risk it already struggles to police. Without strong enforcement and international cooperation, consumer harm may simply become more visible rather than less frequent.”

Commenting on today’s announcement by the UK Treasury that it will establish legislation by 2027 to regulate crypto in line with other financial products, Zumo’s Founder and CEO Nick Jones said:

“Earlier this month, the UK legitimised our sector by formally recognising cryptocurrencies and stablecoins as legal property, after the Property (Digital Assets etc) Bill received royal assent.”

“With today’s announcement, momentum is starting to snowball as we head towards 2026 – which will be the year the UK becomes serious about establishing itself as a genuine crypto hub. Many in the industry have been loudly lobbying for the appropriate regulatory framework that will facilitate new avenues of economic growth, so this is very welcome news.”

“By legislating to extend existing financial regulation to companies involved in crypto, rather than producing complicated rules tailored to the industry as seen with the EU’s Markets in Crypto-Assets Regulation (MiCA), policymakers are sending a clear signal that they believe digital assets can successfully coexist with fiat money in a reimagined future financial system.”

 “We now have the clarity and certainty we’ve been seeking to lay firm foundations for further investment and innovation that will keep the UK at the forefront of financial services. The new laws will bring greater transparency to the sector, keeping bad actors at bay while ensuring consumers benefit from the robust protection they rightly expect from any financial product or service.”