UK FCA Opens Broad Crypto Rules Consultation as 2027 Regime Takes Shape

The UK Financial Conduct Authority opened a new consultation on Dec. 16, 2025, setting out proposed rules and guidance for firms that plan to run regulated cryptoasset activities in the country. The regulator published the paper as part of the UK’s wider shift toward bringing crypto businesses under a clearer, enforceable framework.

The FCA said the consultation covers the market plumbing that supports most retail and institutional activity. That includes rules for crypto trading venues and for intermediaries that arrange, execute, or facilitate crypto transactions for customers. The document also outlines expectations around systems, controls, and conduct standards that would apply once activities fall inside the regulatory perimeter.

At the same time, the consultation reaches beyond spot trading. The FCA included proposals touching cryptoasset lending and borrowing, staking models, and areas of decentralised finance where identifiable firms provide services or interfaces. The approach aims to reduce gaps where consumer exposure rises but oversight stays thin.

Feedback due Feb. 12, 2026 as UK works toward October 2027 start

The FCA set Feb. 12, 2026 as the deadline for responses to CP25/40, inviting feedback from crypto firms, banks, market operators, consumer groups, and other stakeholders. It said responses will shape the final direction of the rulebook and related guidance, including how requirements apply across different business models.

The consultation lands as the UK government continues building a phased crypto framework that aligns more closely with established financial regulation. The UK finance ministry has said the crypto regime is expected to begin in October 2027, while regulators complete detailed standards ahead of that date.

Reuters reported that regulators aim to finish the final framework by the end of 2026, which would give firms time to adjust before the 2027 start. That timeline matters for companies that will need new permissions, updated compliance systems, and clearer client disclosures once the rules take effect.