New Proposals by the Financial Conduct Authority
The Financial Conduct Authority (FCA) is rolling out new proposals aimed at enhancing standards within the cryptocurrency sector, drawing parallels to the regulations that govern traditional financial institutions. These measures emphasize operational resilience and robust systems to combat financial crime, inherently designed to level the playing field for UK firms in the global marketplace.
Consumer Duty Framework and Feedback Solicitation
Acknowledging the unique nature of the crypto asset landscape, the FCA is initiating discussions on the application of the Consumer Duty framework to this sector. This initiative would mandate that firms ensure favorable outcomes for their clients. Additionally, the regulator is soliciting feedback on how to effectively handle consumer complaints, including the potential for issues to be escalated to the Financial Ombudsman Service.
David Geale, who oversees payments and digital finance at the FCA, stated, “Our goal is to cultivate a crypto sector that is sustainable and competitive, while also ensuring market integrity and consumer trust. While these proposals will not eliminate risks associated with crypto investments, they will establish common standards to help consumers understand what to expect from these services. We are currently identifying what these standards should be in anticipation of future legislation.”
Consultation Timeline and Future Regulations
These proposals are part of a broader consultation, building on a publication from HM Treasury released in April 2025. Stakeholders are invited to contribute insights, with a deadline for feedback on the consultation paper set for November 12, 2025, and discussions on the paper concluding on October 15, 2025. The finalized regulations are expected to be unveiled in 2026.
