FCA Considering New Rules for Crypto Sector to Ensure Fair Standards and Protection

Highlights:

• FCA publishes consultation paper setting minimum standards for crypto companies under regulation.
• Proposals mirror traditional finance rules but also address issues unique to crypto markets.
• David Geale says the aim is to balance innovation, trust, and consumer protection without removing risks.

The United Kingdom’s Financial Conduct Authority (FCA) has released new proposals to shape how crypto firms should be treated under financial regulation. A consultation paper published on Wednesday outlines standards that companies will need to meet once oversight formally begins.

The regulator stated that many of the requirements resemble those already applied to traditional finance, such as rules on financial crime controls and operational resilience. However, the FCA also flagged issues specific to crypto markets, opening discussion on whether new obligations are needed.

David Geale, executive director of payments and digital finance at the FCA, explained the purpose behind the consultation. “We want to develop a sustainable and competitive crypto sector – balancing innovation, market integrity and trust. Our proposals won’t remove the risks of investing in crypto, but they will help firms meet common standards so consumers have a better idea of what to expect,” he added.

The UK’s FCA plans to formally regulate crypto firms in 2026, waiving certain traditional financial rules—such as management, system controls, and “cooling-off” periods—to better suit the high volatility of crypto assets. The regulator will also focus on strengthening…

— Wu Blockchain (@WuBlockchain) September 17, 2025

FCA Looks at Adding Consumer Duty to Crypto Rules

The FCA is considering whether Consumer Duty, which requires financial firms to treat customers fairly, should also apply to crypto companies. It is also asking for views on how complaints should be handled, including whether people could take disputes to the Financial Ombudsman Service.

David Geale said the new rules will not remove all risks of crypto investing. Instead, they will set common standards so people know what to expect when using regulated firms. The goal is to protect consumers while keeping competition in the market. 

The proposals build on earlier work from His Majesty’s Treasury. In April, the government published draft laws to regulate crypto more strictly. These draft laws would bring exchanges, brokers, and agents under the same rules already applied to banks and other financial firms. The aim is to ensure stronger oversight, fairer treatment of customers, and higher standards across the market. The plans also cover issues like licensing, customer protection, disclosures, and anti-money laundering.

UK and US Discuss Crypto Coordination

In parallel with domestic plans, UK authorities are working with the United States on deeper cooperation around digital assets. The Financial Times reported on Wednesday that Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent had talks on stronger bilateral coordination.

Anonymous sources said the conversation involved both crypto-focused firms such as Coinbase, Circle, and Ripple, as well as traditional finance executives from Citi, Barclays, and Bank of America. The move signals an intention to keep international standards aligned while developing national rules.

The government aims to keep Britain “open for business” while fighting fraud. Together with the FCA’s plans, this signals how crypto rules may develop in 2025. A recent Aviva survey showed that 27% of UK adults are open to including crypto in retirement savings. About one in five respondents reported holding or having held crypto, with two-thirds of them still owning digital assets.

Yello Paradisers 😎🌴

🚨 UK + US set to align on #crypto rules

Rreports say stablecoins are the first target as London & Washington tighten coordination under a pro-crypto US agenda.

What it means: clearer, more compatible rules→ easier listings, fewer frictions, more… pic.twitter.com/Rq79tYBeNX

— MyCryptoParadise.com (@MCryptoParadise) September 17, 2025