Regulation of cryptossets in the UK is picking up speed and providing the long-awaited clarity for the regulation of this sector. This commenced with the HM Treasury (HMT) publishing a near-final draft of the Financial Services and Markets Act 2000 (Regulated Activities and Miscellaneous Provisions) (Cryptoassets) Order 2025, together with a policy note on 29 April 2025. Under the new rules, firms carrying out the new cryptoasset regulated activities in respect of the new types of cryptoasset specified investments will be brought into the regulatory perimeter.
This was followed by the publication from the Financial Conduct Authority (FCA) of its discussion paper (DP25/1) outlining its proposals for regulating various cryptoasset activities in the UK and two further consultations on the proposed conduct and prudential requirements for firms carrying on the regulated activities of issuing qualifying stablecoins and safeguarding qualifying cryptoassets including qualifying stablecoins (CP25/14 and CP25/15).
In this issue we take you through some of these proposed regulatory frameworks and share our insights on the possible impacts on relevant firms and next steps.
Regulation of cryptossets in the UK is picking up speed and providing the long-awaited clarity for the regulation of this sector.
This commenced with the HMT publishing a near-final draft of the Financial Services and Markets Act 2000 (Regulated Activities and Miscellaneous Provisions) (Cryptoassets) Order 2025, together with a policy note on 29 April 2025. Under the new rules, firms carrying out the new cryptoasset regulated activities in respect of the new types of cryptoasset specified investments will be brought into the regulatory perimeter. Crypto firms with UK consumers will also have to comply with the relevant legal requirements and FCA rules when finalised. HM Treasury intends to legislate for the new cryptoassets regulatory regime by the end of the year.
This was followed by the publication from the FCA of its discussion paper (DP25/1) outlining its proposals for regulating various cryptoasset activities in the UK. These activities include trading platforms, intermediation, cryptoasset lending and borrowing, staking and decentralised finance (DeFi). The FCA is asking for industry input by 13 June 2025, with a view to developing a robust regulatory framework aiming to address the risks and challenges associated with cryptoassets.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
