The Financial Conduct Authority has launched a consultation seeking industry feedback on the future regulation of cryptoasset trading platforms.
Published today (2 May), the FCA’s discussion paper explores proposed rules covering intermediaries, staking, lending and borrowing, and decentralised finance (DeFi).
The consultation forms part of the regulator’s wider Crypto Roadmap, which outlines its phased approach to bringing digital asset activities within its regulatory perimeter.
David Geale, executive director of payments and digital finance at the FCA, said:
“Crypto is a growing industry. Currently largely unregulated, we want to create a crypto regime that gives firms the clarity they need to safely innovate, while delivering appropriate levels of market integrity and consumer protection.
“Our aim is to drive sustainable, long-term growth of crypto in the UK. We’re asking whether we have got the balance right.”
The paper follows draft legislation published by HM Treasury that will, once enacted, formally grant the FCA oversight of certain cryptoasset activities.
It also builds on feedback from a series of industry roundtables led by the regulator.
In addition to crypto trading platforms, the FCA’s roadmap outlines future consultations on market abuse, listings and disclosures, stablecoins and custody, and prudential requirements for crypto firms.
The discussion paper comes shortly after the FCA unveiled its new five-year strategy, which sets out its core priorities: smarter regulation, promoting sustainable economic growth, enhancing consumer support and tackling financial crime.
The deadline for responses is 13 June 2025. A formal consultation on the final regime is expected later this year.
Industry figures have largely welcomed the initiative. Riccardo Tordera Ricchi, director of policy and government relations at The Payments Association, said:
“It’s a huge step forward in digital finance for the UK to finally have the publication of the SI draft on how to progress in cryptoassets.
“We welcome the direction of travel, particularly the focus on sandboxes with major jurisdictions like the US, which are rapidly advancing digital asset regulation – something The Payments Association has long advocated for.
“We now need to maintain this momentum to bring stablecoins into the payments perimeter. We’ve been waiting over two years for HMT to amend the Payment System Regulations, and now need it to move at pace.”
