The UK’s top financial regulator, the Financial Conduct Authority (FCA), has taken another step toward shaping the future of crypto in the country. In its latest move, the FCA has published a discussion paper to gather public views before it begins regulating key parts of the crypto industry.
This signals that clear rules for crypto in the UK may be coming soon—something many in the industry have been waiting for.
What Is the FCA Focusing On?
The FCA is not rushing into regulation without hearing from the people first. The discussion paper is focused on some of the most important and sometimes risky areas of the crypto space:
- Intermediaries (like exchanges and wallet providers)
- Staking, lending, and borrowing of crypto
- Decentralized finance (DeFi) platforms
- The use of credit to buy crypto, which has been rising
The FCA wants to know whether stricter rules should be applied, especially when people are borrowing money to invest in crypto, a move that can be very risky if markets crash.
Building a Safer Crypto Environment
David Geale, the FCA’s executive director for payments and digital finance, explained that the goal is to create a balanced approach. The FCA wants to encourage innovation in the crypto space, but without putting consumers at risk or weakening market trust.
The idea is simple, crypto is here to stay, so regulation must grow alongside it, not shut it down.
A Step-by-Step Roadmap
This paper is part of a wider plan called the Crypto Roadmap. It outlines when and how future rules will be introduced. Topics include:
- Market abuse protections
- Stablecoin rules
- Crypto custody and safekeeping
- How crypto firms manage their risks
This step also follows draft legislation from the UK Treasury, which aims to give the FCA official power over crypto regulation.
Deadline For The Feedback
The FCA is now inviting everyone, from industry experts to ordinary crypto users, to share their views by 13 June 2025. After that, it plans to review all responses and launch a formal consultation later this year.
It all ties into the FCA’s new five-year strategy that focuses on smarter regulation, sustainable economic growth, and protecting consumers in an evolving financial landscape.
