CMC News

U.K. #Crypto Rules Target 2026 Launch After FCA Consultation

The Financial Conduct Authority has unveiled comprehensive proposals bringing crypto firms under full U.K. regulatory oversight. The watchdog's consultation paper adapts existing financial standards rather than creating entirely new frameworks for digital asset companies.

#FCA Executive Director David Geale emphasized developing a sustainable crypto sector while balancing innovation with market integrity. The regulator applies a "same risk, same regulatory outcome" principle but acknowledges crypto's unique technology requires specific adjustments.

#Operational resilience requirements including cyber-attack protections will apply fully to crypto firms. Governance standards align with the Senior Managers and Certification Regime, typically matching consumer credit provider requirements rather than banking standards.

The consultation seeks feedback on extending Consumer Duty obligations to #crypto markets, requiring firms to deliver good customer outcomes. The FCA also explores whether consumers should access Financial Ombudsman Service complaint procedures.

High-level Principles for Businesses will apply with limited exemptions for professional trading between platform members. Retail investor protections remain intact while institutional trades receive similar treatment to traditional multilateral trading venues.

U.K. Chancellor Rachel Reeves and U.S. Treasury Secretary Scott Bessent discussed strengthening bilateral #cryptocurrency oversight coordination. The collaboration included representatives from Coinbase, Circle, Ripple, Bank of America, Barclays and Citi.