UK Moves Closer to Crypto Oversight as FCA Seeks Industry Feedback

The Financial Conduct Authority (FCA) has announced a consultation on plans to regulate the UK crypto market, aiming to create a safer and more transparent environment for investors and businesses. This is an important step toward building trust in digital assets while supporting innovation. The consultation is open until 12th February 2026, giving firms and stakeholders the chance to shape the future of crypto regulation.

Currently, investing in cryptocurrency is largely unregulated in the UK, which means there are limited protections if something goes wrong. Prices can be extremely volatile, and there is a higher risk of fraud, scams, and market manipulation compared to traditional investments. Unlike regulated financial products, crypto investments do not benefit from the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service, so if a platform fails or your assets are lost, you may have no recourse.

The FCA’s proposals focus on key areas such as disclosure requirements for crypto listings, measures to prevent market abuse, and operational standards for trading platforms. They also cover intermediaries, staking services, lending and borrowing arrangements, and even decentralised finance (DeFi). Prudential requirements, including capital and risk management standards, are also part of the plan to ensure firms operate responsibly.

These changes follow recent legislation that brings crypto activities under the Financial Services and Markets Act, with full implementation expected by October 2027. For clients, this means greater protection and transparency in what has traditionally been a high-risk market. For businesses, it offers a clear framework to operate confidently and compliantly.

If you’re involved in crypto—whether as an investor or a business—now is the time to have your say. Responding to the FCA’s consultation could help shape a regulatory environment that works for you. If you’d like guidance on what these proposals mean for your business or how to prepare, our team is here to help.

This article is for general information and does not constitute personal financial advice. If you’re unsure what’s best for you, seek independent financial advice.

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