The United Kingdom’s Financial Conduct Authority proposed rules to promote good business practices among cryptocurrency firms.
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Many of the proposed rules already apply to traditional financial firms, the FCA said in a Wednesday (Sept. 17) press release.
The FCA has crypto asset rules relating to financial promotions and the prevention of financial crime, but the proposals will expand its regulatory remit to include protecting consumers from poor business practices, helping to build trust in the crypto sector, and ensuring that firms are operationally resilient and prepared to fight crime, according to a consultation paper published Wednesday.
The regulator is seeking comments on the proposals, including how the Consumer Duty consumer protection rules should apply to crypto and how complaints should be managed, according to the release.
After receiving feedback on the proposals, the FCA expects to publish final rules in 2026, per the release.
“We want to develop a sustainable and competitive crypto sector—balancing innovation, market integrity and trust,” David Geale, executive director of payments and digital finance at the FCA, said in the release. “Our proposals won’t remove the risks of investing in crypto, but they will help firms meet common standards, so consumers have a better idea of what to expect.”
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The FCA’s release of its proposals follows the February publication of HM Treasury’s draft legislation to create a regulatory framework for crypto assets, the release said.
Geale said in the release that the regulator is working on standards “ahead of legislation to bring it within our regulation.”
The FCA published a cryptocurrency regulation roadmap in November, saying it planned to invite people to participate in the process through a series of “focused consultations” before it issues its final crypto rules in 2026.
The regulator said at the time that it found that 12% of U.K. adults owned crypto, up from 10% in past findings, and that awareness of crypto had reached 93%, up from 91%.
Ten percent of the U.K. adults surveyed by the FCA said they did not conduct any research before buying crypto.
In August, it was reported that the U.K. cryptocurrency industry was praising a decision by the FCA to end its ban on offering crypto exchange-traded products to retail investors.
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