UK FCA Moves Closer to Comprehensive Crypto Regulation With New Consumer Duty Consultation

The UK Financial Conduct Authority (FCA) has taken a major step toward regulating the cryptocurrency industry by reaching the final stage of its consultation process and releasing new guidance on how its Consumer Duty rules will apply to cryptoasset firms operating in the United Kingdom. The regulator is now seeking industry feedback on the proposed framework, with a consultation deadline set for March 12, as it works toward a more structured and transparent crypto regulatory regime.

Under the FCA’s plans, crypto companies offering services to UK consumers will be required to meet the same high standards expected of traditional financial firms. The Consumer Duty rule obliges firms to act in good faith, avoid foreseeable harm, and support customers in achieving positive financial outcomes. This includes providing clear and accurate information, fair pricing, and appropriate customer support throughout the entire user journey, not just at the point of sale.

The FCA emphasized that applying Consumer Duty to cryptoasset businesses is intended to protect consumers without suppressing innovation. According to the regulator, the goal is to create a market where innovation can thrive while ensuring that consumers fully understand the risks associated with investing in digital assets. The FCA stressed that regulation cannot and should not eliminate all financial risk, particularly in a sector as volatile as cryptocurrency.

The consultation and guidance are aimed at firms planning to carry out regulated cryptoasset activities under legislation introduced by the UK Treasury in December 2025. The rules will also be relevant to auditors, advisers, industry bodies, and consumer advocacy groups involved in the crypto sector. The FCA has confirmed that it plans to open the application gateway for cryptoasset permissions in September 2026.

Earlier this month, the FCA announced that crypto companies will be required to obtain full authorization under a new regulatory framework coming into force in October 2027. This requirement will apply even to firms already registered under existing anti-money laundering regulations. As part of this transition, the FCA has continued accepting applications and has already granted money laundering registration to several crypto firms, including Ripple, the issuer of XRP.

With Treasury legislation extending traditional financial regulations to crypto businesses, the UK’s approach to digital asset oversight is becoming clearer, signaling a more mature and accountable crypto market.