UK Regulator Moves Toward Final Crypto Rule Set

The United Kingdom’s financial regulator is moving into the final stage of its crypto rulemaking process. The Financial Conduct Authority said on Friday it is seeking feedback on a final batch of proposed crypto rules as part of the government’s broader digital asset roadmap.

The FCA said the consultation covers 10 separate proposals and marks the last phase before formal rules are drafted. Feedback will remain open until March 12.

The FCA said the proposals aim to build a crypto market that can operate within clear legal boundaries while still allowing new business activity. The regulator stressed that risk will remain part of digital asset investing and that rules aim to clarify responsibility rather than remove losses.

Scope of the Proposed Rules

The proposals were first outlined in December and signal the FCA’s plan to treat crypto closer to traditional finance. The agency said it has also made strong progress in shaping the framework and is now asking for final market input.

This stage is key for firms operating in or targeting the UK market. Once the consultation closes, the FCA could move toward final rules.

The proposals cover several core areas of the digital asset market. These include standards for how firms operate, rules around using credit to buy crypto, reporting duties, and how customer assets must be protected.

The FCA further outlined plans for how digital assets can be used as collateral in borrowing arrangements. Retail protections are a central focus, with tighter controls on customer fund  handling.

The goal is to apply clear conduct rules across exchanges, brokers, and service providers, similar to those used in other financial markets.

Licensing Regime Timeline

The FCA is already working on a new licensing system. Earlier this month, the regulator shared a timeline for crypto asset service providers to register under the new regime. It expects the application window to open in September 2026, but final dates has not been confirmed yet. Under the system, crypto firms will need FCA approval to legally operate in the UK.

This represents a major shift from the current setup, where many firms operate under lighter registration rules.

For traders and investors, the changes signal tighter controls but clearer rules. For companies, the next few months will be about responding to the consultation and preparing for a more regulated operating environment.