UK’s FCA Launches Crypto Standards Consultation Amid Criticism Over Disjointed Regulation

The UK’s Financial Conduct Authority (FCA) has launched a consultation on new minimum standards for crypto firms. The regulator aims to apply rules from traditional finance to promote a well-regulated sector.

While the FCA intends to strengthen consumer safeguards and market integrity with these proposals, the UK’s overall regulatory approach has been criticized as slow, restrictive, and disjointed.

The UK’s financial watchdog, the FCA, is seeking public feedback on a new set of proposed minimum standards for cryptocurrency companies to tighten its grip on the crypto sector.

The proposals in the consultation paper CP25/25 aim to apply many of the same rules from traditional finance to crypto firms. The regulations especially focus on operational resilience and effective systems to combat financial crime.

Today, the FCA published a new consultation paper — CP25/25: Application of the FCA Handbook for Regulated Cryptoasset Activities — which looks at the proposed application of existing FCA Handbook rules to firms conducting regulated cryptoasset activities