The UK’s Financial Conduct Authority (FCA) has unveiled plans to bring crypto firms under comprehensive regulatory oversight by adapting existing financial rules. This move marks a significant shift toward integrating digital assets into the country’s mainstream financial system. The FCA’s proposed framework draws on established regulations, aiming to ensure that crypto businesses meet the same standards as traditional financial services.

Key components of the plan include the need for crypto trading venues, custodians, and issuers to obtain formal authorization and adhere to new prudential standards. The FCA’s proposals will affect both UK-based and certain overseas crypto platforms serving UK retail customers, requiring these firms to establish a physical presence in the UK and comply with local regulatory requirements.

Phased implementation is expected. The current consultation period closes in October 2025, with the final rules set to be published and put into effect in 2026. Firms will face enhanced governance requirements, including stricter consumer protection measures, mandatory surveillance systems to prevent market abuse, and robust disclosure obligations for cryptoasset promotions and issuances.

The FCA’s overarching goal is to improve consumer safety, reduce risks of firm failures, and boost overall confidence in the UK’s digital asset market. By clarifying expectations and providing a predictable regulatory environment, the new regime aims to strike a balance between protecting consumers and fostering innovation, establishing the UK as an attractive global hub for crypto businesses.