UK Financial Authority Nears Completion of Crypto Regulation Consultations

The United Kingdom's Financial Conduct Authority (FCA) is approaching the final stages of its consultation process for significant proposed cryptocurrency regulations, as it continues to develop the government's crypto roadmap. According to Cointelegraph, the FCA announced on Friday that it is now seeking feedback on ten regulatory proposals, marking the "final step" in its consultations on potential rules for the sector. The FCA emphasized that these proposals aim to foster an open, sustainable, and competitive crypto market that people can trust. However, the agency acknowledged that risks remain and expressed a desire for a market where innovation can thrive, while ensuring that individuals understand the associated risks. The FCA clarified that regulation should not attempt to eliminate all risks, but rather help investors comprehend them. The proposed regulations encompass various aspects of the crypto market, including business standards of conduct, credit-based crypto purchases, regulatory reporting, asset safeguarding, and retail collateral treatment for borrowing crypto, among other areas. The deadline for feedback on these proposals is set for March 12. Initially outlined in December, the FCA's package of proposals reflects its intent to regulate the crypto market in a manner similar to traditional finance. The FCA has reported "significant progress" in refining the regulatory details as part of the government's roadmap. Earlier this month, the agency announced a timeline for crypto asset service providers to register under its new licensing regime. The FCA expects the application period to commence in September 2026, with the timeline to be confirmed in due course. This licensing regime will impose stricter oversight and constraints on crypto firms, requiring them to obtain FCA authorization to operate within the UK.