Britain's Financial Regulator Approaches Final Phase of Cryptocurrency Regulation Consultation
Britain's Financial Conduct Authority is now collecting last-stage input on regulatory proposals designed to extend conventional financial sector standards to cryptocurrency operations across the United Kingdom.
Britain's principal financial regulatory body is moving into the concluding phases of gathering public input regarding numerous significant cryptocurrency regulation proposals, as the organization advances its work on the administration's comprehensive cryptocurrency strategy.
On Friday, the Financial Conduct Authority announced it is currently soliciting responses on 10 distinct cryptocurrency regulatory proposals, representing the "final step" in its consultation process concerning prospective regulations for the digital asset industry.
"These proposals continue our progress towards an open, sustainable and competitive crypto market that people can trust," the FCA said.
"At the same time, risks remain, and we want a market where innovation can thrive, but where people understand the risks. But regulation can't — and shouldn't try — to get rid of all risk. We want those interested in investing in crypto to understand that risk."
The regulatory proposals put forward by the FCA encompass numerous facets of the cryptocurrency marketplace, including standards for business conduct, purchases of crypto assets using credit, requirements for regulatory reporting, protocols for safeguarding assets, and the handling of retail collateral for cryptocurrency borrowing purposes, alongside several other considerations. March 12 has been established as the closing date for submitting feedback.
The initial outline for this collection of proposals emerged in December, when the FCA indicated its intention to apply regulatory frameworks to the cryptocurrency sector that mirror those used in traditional financial markets.
According to the FCA, the organization has achieved "significant progress" in finalizing the regulatory specifications as an integral component of the government's strategic roadmap. In the opening weeks of this month, the FCA revealed a schedule outlining when cryptocurrency asset service providers must complete registration under its newly established licensing framework.
"We expect the application period will open in September 2026," the FCA noted, adding that the timeline will be confirmed in due course.
This new licensing framework establishes more stringent supervision and restrictions on cryptocurrency businesses, mandating that these entities obtain authorization from the FCA before they can conduct operations within United Kingdom borders.