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The UK’s Financial Conduct Authority has opened the final consultation period for a comprehensive crypto regulatory framework, giving industry participants until March 12 to submit feedback on rules that would bring digital asset firms under licensing requirements similar to traditional financial institutions.
The proposals, covering everything from custody standards to consumer protections, represent the last opportunity for stakeholders to shape regulations set to take effect in October 2027 under an expanded mandate from Parliament.
The FCA announced it is now soliciting the final round of feedback on ten major proposals affecting the crypto sector, which collectively aim to align digital-asset markets with traditional finance standards. The proposals span a wide range of areas, including:
The consultation represents what the FCA describes as the final step in its engagement with stakeholders on these proposed rules under the government’s broader crypto roadmap.
“These proposals continue our progress towards an open, sustainable, and competitive crypto market that people can trust. At the same time, risks remain, and we want a market where innovation can thrive, but where people understand the risks.” – The FCA said in a statement.
Industry participants and observers view this phase as critical because responses will help shape the final regulatory text expected later in 2026, ahead of the regime’s scheduled implementation in October 2027 under the revised Financial Services and Markets Act 2000 framework.
Under the emerging framework, the FCA seeks to bring crypto firms such as exchanges, brokers, custodians, and other service providers into a regulated perimeter closer to that of traditional financial institutions.
This would mean that entities offering specified crypto activities must obtain FCA authorization to operate legally in the UK once the regime goes live.
The FCA has also outlined expectations that the application window for licensing will open in September 2026, allowing firms to prepare for the new requirements.
According to the FCA spokesman, regulation can’t, and they shouldn’t try to eliminate all risk, because while the regime is designed to protect consumers and market integrity, it will not eliminate the inherent volatility and risks associated with crypto assets.
The proposed rules are wide-ranging. For example, corporate governance and risk management standards could be applied to digital-asset intermediaries, similar to those in traditional banking or securities markets.
Meanwhile, consumer duty provisions included in the consultation aim to ensure that firms deliver fair outcomes for customers.
The FCA’s final consultation comes amid a broader legislative push by HM Treasury to embed crypto activities within the UK’s statutory financial services framework.
In late 2025, Parliament was presented with draft regulations under the Financial Services and Markets Act, which would expand the FCA’s remit over digital assets.
The regulator has published multiple consultation papers covering areas such as market misconduct, disclosures, stablecoin issuance, and prudential requirements for crypto firms.
These papers collectively outline the contours of the future regime, with stakeholder responses informing the development of permanent rules.
Industry groups have generally welcomed the clarity and certainty that a comprehensive regime could bring, particularly after years of fragmented or limited oversight.
Many firms identify the UK’s efforts as a potential competitive differentiator against other financial hubs, such as the EU and the United States, which are also progressing their own regulatory frameworks.
While many crypto firms and trade bodies have engaged with the process, some caution that overly prescriptive standards could stifle innovation or impose compliance burdens, especially on smaller players.
Nonetheless, stakeholders widely acknowledge that legal clarity could help bolster investor confidence and institutional participation in the UK market.
The FCA’s emphasis on risk transparency and consumer understanding has been echoed by market analysts who argue that greater regulatory certainty may attract more institutional capital to the ecosystem while safeguarding retail investors.
Pending finalisation, firms are actively reviewing the proposals and preparing to adjust business models in anticipation of the new regime. With feedback sets closing in March, the regulator is expected to publish final rule drafts later in 2026.
