The Financial Conduct Authority (FCA) has announced its intention to seek feedback on proposed regulations for cryptoasset trading platforms. This move is part of the FCA’s ongoing efforts to develop a comprehensive regulatory framework for the sector.
According to a press release, the FCA has issued a discussion paper inviting feedback on regulating various cryptoasset activities. These include intermediaries, staking, lending, borrowing, and decentralized finance. The aim is to address potential risks and establish clear regulatory guidelines. The FCA is also considering imposing restrictions on the use of credit for crypto purchases due to an increase in such transactions.
The discussion paper forms part of the FCA’s Crypto Roadmap, which outlines regulatory plans concerning market abuse, admissions and disclosures, stablecoins, custody, and prudential requirements. This initiative follows draft legislation from the Treasury aimed at bringing cryptoasset activities under FCA regulation and incorporates insights from industry roundtables led by the FCA. Additionally, it aligns with the FCA’s 2025-2030 strategy focused on economic growth, consumer protection, and financial crime prevention. Stakeholders are invited to provide feedback until June 13, 2025, with a consultation on the final framework expected later this year.
“Crypto is a growing industry,” said David Geale, executive director of payments and digital finance at the FCA. “Currently largely unregulated, we want to create a crypto regime that gives firms the clarity they need to safely innovate while delivering appropriate levels of market integrity and consumer protection.” Geale added that their aim is “to drive sustainable, long-term growth of crypto in the UK” and questioned whether they have “got the balance right.”
Learn Signal reports that the Financial Conduct Authority was established on April 1, 2013. It succeeded the Financial Services Authority as part of a reform of the UK’s financial regulatory framework following the global financial crisis. Operating independently from the UK government and funded by fees charged to the financial services industry, its primary objectives include protecting consumers, ensuring market integrity in UK financial markets, and promoting effective competition for consumers’ benefit.
