The UK’s Financial Conduct Authority (FCA) has launched a new consultation on proposed rules to regulate the cryptocurrency sector, signaling another step toward a comprehensive and formalized regulatory regime.
According to Foresight News, the proposal spans a wide range of activities across the crypto ecosystem, including market access and disclosures, market abuse and manipulation, crypto trading platforms, intermediaries, staking and lending services, decentralized finance (DeFi), and prudential requirements for firms operating in the space.
The FCA’s consultation signals that the UK is moving decisively toward full-spectrum crypto regulation, offering long-term clarity for firms while raising near-term compliance and governance expectations across the industry.
The consultation reflects the FCA’s intent to move beyond piecemeal oversight toward a holistic regulatory framework that aligns consumer protection with market integrity and financial stability. Stakeholders have until February 12, 2026, to submit feedback.
David Geale, the FCA’s Director of Payments and Digital Finance, said the regulator’s objective is to strike a balance between safeguarding users and enabling responsible innovation.
“Our goal is to establish a framework that protects consumers, supports innovation, and fosters trust,” Geale said. “We have made significant progress in implementing our cryptocurrency regulation plan and are assisting companies in meeting our standards and completing registration, while awaiting further legislation.”
For crypto firms, the consultation signals greater regulatory clarity—but also higher compliance expectations. For markets, it reinforces the UK’s ambition to position itself as a jurisdiction where digital assets can operate within clearly defined rules rather than regulatory ambiguity.
