The UK’s Financial Conduct Authority (FCA) has initiated a wide-ranging public consultation on its proposed regulatory framework for the cryptocurrency industry, inviting feedback from market participants, firms and consumers through Feb. 12, 2026. The move marks a key step in shaping the United Kingdom’s future crypto rulebook ahead of planned implementation in 2027.
What the consultation covers
The FCA’s consultation — published on Dec. 16, 2025 — sets out a series of proposals for how crypto markets and firms should be regulated. The draft rules and guidance address many facets of digital-asset activity, including:
- Regulation of crypto-asset trading platforms and intermediaries.
- Staking, lending and borrowing protections to clarify risks for users and firms.
- Admissions and disclosures for crypto assets, and controls to counter market abuse and manipulation.
- Prudential requirements designed to strengthen financial resilience for regulated crypto firms.
- Standards intended to help consumers make informed decisions when engaging with crypto products.
Consultation papers including CP25/40, CP25/41 and CP25/42 form part of the FCA’s broader “Crypto Roadmap” — a sequence of proposals that together will create a more comprehensive regulatory structure. Responses to these papers are invited by 12 February 2026.
Regulation timeline and context
The consultation comes shortly after the UK government announced that formal crypto regulation would begin in October 2027 by bringing digital assets under the wider perimeter of financial services law, aligning crypto oversight with traditional finance (TradFi) regimes. This legislative shift aims to provide clearer rules for firms and greater protections for consumers.
The FCA has said that public input will help refine and finalise the regime before policy statements and rules are published in 2026 ahead of next year’s rollout. Consultation topics include consumer disclosures, risk-management practices, market abuse prevention, and safeguards for staking and borrowing activities.
Regulator’s objectives
In announcing the consultation, FCA officials emphasized the goal of protecting consumers, supporting innovation and strengthening trust in the crypto market. The consultation reflects ongoing efforts to balance emerging technologies with robust regulatory standards. The regulator has also published research showing that the proportion of UK adults holding crypto assets has declined significantly over the past year, reinforcing calls for clearer oversight.
FCA executive director for payments and digital finance David Geale said regulators are aiming for a regime that protects people while allowing the market to grow sustainably. Public responses will be considered as part of finalising the rules.
Industry and public participation
Industry groups, crypto firms and consumer advocates will likely engage in the consultation process, providing commentary on topics ranging from exchange operations and DeFi frameworks to consumer protections and risk disclosures. The FCA typically reviews feedback and publishes summaries that help shape the final regulatory framework.
What to watch next
- Feedback analysis: The FCA’s response to consultation submissions and potential revisions to proposals.
- Final rules: Publication of policy statements and definitive regulations in 2026.
- Implementation: Preparation by crypto businesses and legal frameworks ahead of the UK’s 2027 regulatory start date.
Reporting note: This article is compiled from verified news sources and official FCA publications. It reflects ongoing developments in UK crypto regulation as authorities seek input on draft rules shaping digital asset governance.
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