The UK Financial Conduct Authority, or FCA, has launched a new set of consultations outlining how digital asset markets could be regulated in the coming years. The move marks a significant step in the UK government’s broader plan to bring crypto assets within a structured regulatory framework while allowing innovation to continue.
The proposals are spread across three consultation papers and cover crypto trading platforms, intermediaries, staking services, lending and borrowing models, market abuse controls, disclosures and decentralized finance. According to the FCA, responses to the consultations will remain open until February 12, 2026.
The regulator said the objective is not to remove all risks from crypto investing but to ensure that firms operate transparently and that consumers clearly understand the risks involved. David Geale, executive director for payments and digital finance at the FCA, said the authority wants a regime that protects consumers, supports innovation and promotes trust, while using industry feedback to shape the final rules.
FCA shifts focus from promotions to full market structure
The consultations represent the next phase of the UK’s crypto policy, moving beyond earlier rules that mainly targeted financial promotions and anti money laundering compliance. The FCA is now seeking to apply clearer standards around how crypto markets function in practice.
Under the proposals, crypto exchanges would be expected to meet defined requirements related to asset admissions, disclosures and trading integrity. Measures aimed at preventing insider trading and market manipulation would bring crypto markets closer to the standards seen in traditional finance.
The consultation also places strong emphasis on staking services. The FCA is seeking views on how firms should disclose risks when offering yield products that require customers to lock up their crypto assets. Lending and borrowing activities are included as well, with suggested safeguards designed to protect both borrowers and lenders from excessive risk.
Decentralized finance is another key area under review. The FCA is asking whether DeFi activities such as trading, lending and borrowing without intermediaries should face similar regulatory expectations as conventional financial services, depending on how much control or influence firms exert over these systems.
Despite the ongoing work, the FCA reminded users that most crypto activities remain unregulated at present, apart from financial promotions and financial crime rules. Geale cautioned consumers to remain aware of this regulatory gap while consultations continue.
UK plans to bring crypto under FCA oversight by 2027
The consultations follow closely after the UK government confirmed plans to extend existing financial laws to cover crypto assets. The Finance Ministry has indicated that legislation could be introduced to bring crypto companies fully within the regulatory perimeter by October 2027, placing them under FCA supervision.
UK Chancellor Rachel Reeves described the move as a crucial step in maintaining the country’s role as a global financial center in the digital era. If implemented, the changes would significantly expand the FCA’s authority over crypto markets and set clearer expectations for firms operating in the UK.
As the FCA gathers feedback from industry and the public, the consultations are expected to play a central role in shaping how crypto trading, staking and DeFi develop within a regulated UK framework.
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