FCA opens consultation on comprehensive UK cryptoasset rules

The United Kingdom is moving closer to a more comprehensive regulatory framework for cryptoassets. In mid December 2025, the FCA set out a new package of proposals and invited feedback as the next step in shaping future crypto rules. The stated direction is to support an open, sustainable, and competitive crypto market that people can trust, while recognising that regulation cannot and should not eliminate all risk. The emphasis is on helping consumers make informed decisions, so that anyone investing in cryptoassets does so with a clear understanding of potential losses and market volatility.

The proposals are framed around applying a broadly comparable approach to cryptoassets as exists in traditional finance. This includes clearer information for consumers, proportionate requirements for firms, and flexibility intended to support innovation. In practical terms, the consultation focuses on both the quality of information available to investors and the conduct and resilience of the firms that operate in the crypto market.

A core element is admissions and disclosures. This theme addresses how cryptoassets are listed and what firms should disclose to investors. The underlying policy goal is straightforward: people should have the facts before they invest. In markets where token issuers and platforms can vary significantly in transparency and governance standards, disclosure rules can help reduce information gaps and limit the risk that consumers buy products without understanding key features, limitations, or risks.

The proposals also cover market abuse, aiming to reduce insider trading and market manipulation. This is significant because concerns about unfair trading practices can undermine confidence in crypto markets and can create harms for both retail and institutional participants. A market abuse regime may also shape how trading venues monitor activity, detect suspicious patterns, and respond to misconduct.

Another major focus is cryptoasset trading platforms. The regulator proposes standards for exchanges intended to keep trading safe and reliable. While the consultation text does not claim that failures can be fully prevented, the direction of travel is toward clearer operational and conduct expectations for the venues that execute trades and custody or facilitate movement of cryptoassets.

Intermediaries are included as well. This category covers brokers and other firms that sit between consumers and markets. The proposed requirements aim to ensure that these actors operate responsibly. This is important because intermediaries can shape consumer outcomes through marketing, execution quality, product selection, disclosure practices, and the way risks are communicated during onboarding and ongoing servicing.

The consultation also addresses staking. Staking services allow customers to lock up cryptoassets in exchange for a reward, but the risks and conditions can be complex and can vary across products and firms. The regulatory direction is to ensure risks are communicated clearly when firms offer staking, supporting better consumer understanding and reducing the likelihood that rewards are marketed without adequate explanation of constraints, eligibility conditions, or downside scenarios.

Lending and borrowing is another area of focus, with proposals intended to protect both lenders and borrowers. Crypto lending products have been associated globally with rapid growth, business model fragility, and consumer losses when firms fail or when collateral values collapse. A regulatory approach in this area is therefore likely to concentrate on risk controls, transparency, and responsible product design and distribution.

Decentralised finance is explicitly included. Decentralised finance enables trading, lending, and borrowing without a traditional intermediary, often using software protocols and automated processes. The regulator is asking whether rules similar to those used in traditional finance should also apply in this context. This is a strategically important question because it goes to how the regulatory perimeter should be defined when market functions are delivered through protocols rather than conventional firms.

Finally, prudential requirements are proposed as financial safeguards for firms, intended to help them manage risk more effectively. In practice, prudential expectations can influence how firms manage liquidity, operational resilience, and wind-down planning, which can be particularly relevant in crypto markets where shocks can transmit quickly.

The consultation package is presented as building on earlier engagement and new research published at the same time. It is also described as aligned with new government legislation laid the day before the announcement. The consultation window runs until 12 February 2026, giving stakeholders time to provide feedback across multiple policy areas. The regulator also notes that, at present, crypto remains largely unregulated in the United Kingdom, except in relation to financial promotions and financial crime requirements, and it highlights ongoing work to support firms that seek registration under the Money Laundering Regulations 2017.

Overall, the proposals represent an effort to bring greater structure and consistency to the United Kingdom crypto market, combining consumer information rules with market integrity measures and firm-level safeguards. The consultation stage matters because it will shape final rules that aim to balance innovation with credible protections and clearer accountability across the cryptoasset ecosystem.

Source: FCA seeks feedback on proposals for UK crypto rules | FCA