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3w ago

U.K. FCA Opens Final Consultation on FSMA-Based Crypto Rules

The regulator is seeking views on consumer protection, conduct and governance as it finalizes a framework that will require full authorization and align crypto oversight with the Financial Services and Markets Act.

Fca outlines final crypto framework, seeks feedback on governance and consumer duty

Overview

  • Responses to the FCA’s consultation are due by 12 March 2026, marking the final stage before detailed rules are set for cryptoasset firms.
  • The draft Cryptoasset Regulations bring a wide range of activities into FSMA scope, including stablecoin issuance, operating trading platforms, dealing and arranging, custody, and qualifying staking.
  • Firms will need full FCA authorization with crypto-specific permissions and regulatory capital, with no automatic conversion for AML or payments registrants and variations required for existing FSMA-authorized firms.
  • The proposals extend Consumer Duty and conduct standards to crypto, set safeguarding and custody expectations, address staff competence and location policy, and cover dispute resolution, reporting, credit use for purchases, and retail collateral.
  • The transition plan targets an application window opening in September 2026 and a regime start on 25 October 2027, with saving provisions for timely applicants, potential limits for latecomers, and new market abuse and public offer restrictions carrying criminal sanctions.