The UK’s financial regulator is entering the final stretch of its work on a comprehensive crypto rulebook, as it seeks last-round feedback on proposals that would bring large parts of the sector closer to traditional financial regulation.
On Friday, the Financial Conduct Authority said it has opened consultations on 10 proposed crypto rules, calling the process the “final step” before setting out a clearer regulatory framework under the government’s crypto roadmap.
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“These proposals continue our progress towards an open, sustainable and competitive crypto market that people can trust,” the FCA said, while stressing that regulation is meant to manage — not eliminate — risk. The regulator added that investors must understand crypto’s inherent volatility and uncertainties, even in a regulated environment.
Package of rules up for consultation. Source: FCA
Traditional finance standards come to crypto
The proposals span a broad range of market activity, including conduct standards for crypto firms, restrictions on credit-based crypto purchases, regulatory reporting obligations, asset safeguarding requirements, and rules governing how retail users can post crypto as collateral when borrowing.
The FCA has set March 12 as the deadline for industry and public feedback. The package builds on an initial outline published in December, when the regulator signaled its intention to align crypto oversight more closely with the standards applied across traditional financial markets.
According to the FCA, significant progress has already been made in refining how the rules would work in practice, reflecting ongoing coordination with the UK government’s broader strategy for digital assets.
Licensing regime and tighter oversight ahead
Earlier this month, the FCA also shared preliminary timelines for a new licensing regime that will require crypto asset service providers to obtain formal authorization to operate in the UK. The regulator said the application window is expected to open in September 2026, with final dates to be confirmed.
Once in force, the licensing framework would impose tighter oversight and operational requirements on crypto firms, bringing them more firmly within the UK’s financial regulatory perimeter. The move is intended to improve consumer protection while giving firms clearer expectations around compliance.
The final consultation phase signals that the UK is edging closer to a more defined and enforceable crypto rulebook, even as regulators balance innovation with financial stability and investor protection.