The FCA is seeking views on the future regulation of specific cryptoasset activities, ahead of legislation to bring them within regulation. It has published a discussion paper, in which it seeks views on its approach to regulating cryptoasset trading platforms, intermediaries, cryptoasset lending and borrowing, staking and decentralised finance, and the use of credit to purchase cryptoassets.
It follows last week's publication of draft legislation by the Treasury that, once passed, will bring specific cryptoasset activities within the FCA's regulation.
In particular, the paper seeks views about how the FCA will regulate:
- Cryptoasset trading platforms (CATPs): these are entities that will be authorised to operate a qualifying cryptoasset trading platform.
- Intermediaries: this includes parties that will be authorised to deal in qualifying cryptoassets as principal, as agent, and arrange deals in qualifying cryptoassets.
- Cryptoasset lending and cryptoasset borrowing: operating a cryptoasset lending platform and cryptoasset lending and borrowing will fall under the regulated activities of cryptoasset dealing as principal and arranging. The FCA proposes specific rules for these business models due to their risks, as well as aiming to ensure mitigation and effective oversight.
- Staking: the FCA will aim to address technological, customer understanding and safeguarding risks.
- Decentralised finance: this will be covered by the new regime where it involves cryptoasset regulated activities and there is a clear controlling person(s) carrying on an activity.
- Use of credit to buy cryptoassets. The FCA is exploring whether to impose restrictions on firms from accepting credit as a means for consumers to buy cryptoassets but potentially exempting qualifying stablecoins issued by an FCA-authorised stablecoin issuer.
In Q2 2025, the FCA will be consulting on the proposed rules and guidance for issuing a qualifying stablecoin, safeguarding qualifying cryptoassets and specified investment cryptoassets. The FCA will also issue a consultation about the prudential framework for cryptoassets and prudential requirements for qualifying stablecoins and safeguarding.
These activities will also be subject to wider conduct and firm standards, such as the Consumer Duty and rules within the Conduct of Business Sourcebook. The FCA will consult on these standards in Q3 2025.
The FCA's paper is the latest policy publication in the FCA's Crypto Roadmap which sets out its plan for consulting on future crypto regulation. Other areas in the roadmap include market abuse and admissions and disclosures, stablecoins and custody, and prudential considerations.
The deadline for views is 13 June.
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