UK Crypto Regulation: FSA Calls for Feedback on Proposed Rules
The UK’s financial watchdog, the Financial Conduct Authority (FCA), is taking a major step towards establishing a comprehensive framework for the country’s crypto regulation. In the latest development, the regulator has launched a consultation on new proposals for overseeing the UK crypto industry.
The proposed rules, which cover a range of critical areas including admissions and disclosures, market abuse, and prudential requirements, aim to create legislation that fosters the industry’s growth and establishment while safeguarding consumers. With the UK seeking to become a global hub for crypto innovation, the FCA’s proposal is expected to play a key role in shaping the nation’s financial ecosystem.
UK’s New Crypto Regulation to Balance Innovation and Protection
In an official statement released on December 16, 2025, the Financial Conduct Authority of the United Kingdom announced its strategic move to establish progressive crypto regulation. The watchdog is now seeking views on new proposals to further shape the country’s crypto laws, with the aim of creating an open, sustainable, and competitive space. The statement read,
“We are asking for views on new proposals as the next step in shaping the UK’s crypto rules. These proposals continue our progress towards an open, sustainable and competitive crypto market that people can trust.”
The regulators asserted that their goal is to foster innovation while ensuring security for investors. They added that the novel crypto regulation is intended to guide the community, ensuring that they understand the hidden dangers of crypto. The proposals are based on a similar approach to traditional finance (TradFi), prioritizing transparency, accountability, and innovation-friendly regulations. David Geale, FCA’s executive director for payments and digital finance, noted,
“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.”
Unveiling Key Areas of Focus
Notably, the FCA’s consultation covers several key areas. One of the main focuses is the crypto listing rules. The rules for listing cryptocurrencies and investor disclosures will ensure people have the facts before investing. The regulator is also taking efforts to prevent market abuse, keeping the industry fair.
In addition, the new crypto regulation proposal also focuses on standards for crypto asset trading. This ensures that all trades across multiple exchanges are safe and reliable. They will also prioritize rules for the use of digital assets as collateral in lending and borrowing. This will protect both lenders and borrowers.
Moreover, the proposal outlines requirements for intermediaries, clear risk disclosure for staking services, and prudential requirements for firms. The team is also exploring whether traditional financial rules should apply to decentralised finance (DeFi).
What to Expect in the Future? New Rules to Launch in 2027
Interestingly, the UK’s new crypto regulation is set to be finalized by 2026, potentially taking effect by October 2027. Finance Minister Rachel Reeves emphasised that the new framework will provide clear rules, enhance consumer protection, and eliminate illicit actors from the market.
Reeves noted that the crypto regulation would provide “clear rules of the road, strengthen consumer protections, and keep dodgy actors out of the market.”
