The Financial Conduct Authority (FCA) is considering how its Consumer Duty framework should apply to the crypto sector, as part of new proposals aimed at raising standards and protecting investors.
The regulator has launched a consultation on minimum requirements for crypto firms, which would align them more closely with traditional financial services.
Alongside Consumer Duty obligations to deliver good outcomes for customers, the rules would cover operational resilience and controls to tackle financial crime.
The FCA said the framework is designed to be proportionate, supporting the UK’s international competitiveness while recognising the unique features of cryptoassets.
It is also seeking feedback on complaints handling, including whether consumers should be able to refer disputes to the Financial Ombudsman Service.
David Geale, executive director of payments and digital finance at the FCA, said:
“We want to develop a sustainable and competitive crypto sector – balancing innovation, market integrity and trust.
“Our proposals won’t remove the risks of investing in crypto, but they will help firms meet common standards so consumers have a better idea of what to expect.”
The consultation follows HM Treasury’s draft legislation published in April. Responses are due by 15 October for the discussion paper and 12 November for the consultation paper, with final rules expected in 2026.
Meanwhile, the FCA is preparing to lift its ban on retail investment in cryptocurrency exchange-traded notes (ETNs).
Recent rule updates require ETNs to be traded on FCA-approved, UK-based Recognised Investment Exchanges and to comply with financial promotion requirements, ensuring consumers receive clear and accurate information.
Money Marketing understands that AJ Bell, Hargreaves Lansdown and Interactive Investor are among the platforms expected to make ETNs available once the ban is lifted.
