The UK Financial Conduct Authority (FCA) has launched a comprehensive consultation to establish minimum regulatory standards for cryptocurrency firms, marking a significant step in formalizing the country's crypto regulatory framework. Published on September 17, 2025, the consultation paper outlines proposals to align crypto companies with traditional financial regulations while acknowledging the unique aspects of digital assets.
The proposed rules require crypto exchanges, custodians, and intermediaries to implement systems for operational resilience and financial crime prevention, mirroring standards applied to traditional finance firms. The FCA emphasizes that these measures aim to create consistent expectations across the sector while safeguarding the public and maintaining market integrity.
A key discussion point is whether the UK's Consumer Duty should apply to crypto asset firms, which would mandate companies to deliver good outcomes for customers throughout their services. The consultation also explores dispute resolution mechanisms, proposing that consumers should be able to escalate complaints to the Financial Ombudsman Service, bringing crypto firms closer to traditional finance obligations.
Feedback deadlines for the consultation fall in October and November 2025, with the FCA expecting to finalize the new rules in 2026. The regulator emphasizes that regulation should not stifle growth but ensure safe engagement, aiming to develop a "sustainable and competitive crypto sector balancing innovation, market integrity and trust," according to David Geale, executive director of payments and digital finance.
The FCA's initiative follows draft legislation issued by His Majesty's Treasury in April 2025 and aligns with broader international coordination efforts. Recent discussions between UK and US officials, involving companies like Coinbase, Circle, and Ripple, as well as traditional financial firms including Bank of America, Barclays, and Citi, indicate growing global cooperation on crypto oversight.