The FCA has published a consultation paper (CP25/25) on how the FCA Handbook will apply to regulated cryptoasset activities.
HM Treasury is going to bring certain cryptoasset activities within the FCA's regulatory remit. In April 2025, it published a draft statutory instrument to amend the Financial Services and Markets Act 2000 (Regulated Activities) Order to expand the regulatory perimeter.
Currently, the FCA's cryptoasset rules cover financial promotions and preventing financial crime. When the final SI comes into force, it will expand the FCA's remit to capture issuing qualifying stablecoins, safeguarding qualifying cryptoassets and specified investment cryptoassets, operating a qualifying cryptoasset trading platform, intermediation and staking. The FCA is currently working on its regulatory framework for cryptoasset firms.
It is now consulting on how the existing FCA Handbook rules will apply to firms, including High Level Standards such as the Senior Management Arrangements, Systems and Controls Sourcebook (including governance, Senior Managers and Certification Regime, financial crime and operational resilience), and Business Standards (specifically the Environmental, Social and Governance Sourcebook). This consultation ends on 12 November 2025.
It is also seeking views on its approach to the Consumer Duty, Business Standards such as the Conduct of Business Sourcebook, Product Intervention and Product Governance Sourcebook, Redress (Dispute Resolution: Complaints) and application of the Financial Ombudsman Service under the new cryptoasset regime. In recognition of some of the unique features of the cryptoasset market, the FCA has opened a discussion on how the Consumer Duty, which would require firms to act to deliver good outcomes for their consumers, should apply to crypto. It is also seeking views on how complaints should be managed, including whether consumers should be able to refer them to the Financial Ombudsman Service. This consultation ends on 15 October and the FCA intends to consult further on these issues later in 2025.
The FCA is also going to consult on proposals for charging cryptoasset firms as part of its annual consultation on fees policy, which is due in November 2025.
Once the new regime is in place, firms and individuals conducting these new regulated activities will need to apply for authorisation before carrying out any of them by way of business in the UK. Firms that are currently registered as cryptoasset firms under the money laundering regulations will need to apply for authorisation under the Financial Services and Markets Act 2000. Firms will need to be operationally resilient and requirements on firms to have systems and controls to fight crime will be strengthened.
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