UK Crypto Rulebook Nears Completion as FCA Wraps Consultation Phase
According to reports, the (UK) is nearing the completion of its digital asset regulatory journey as the Financial Conduct Authority (FCA) concludes the consultation phase on its proposed crypto rulebook. later than soliciting feedback from industry stakeholders, consumer groups, and international partners, the FCA is preparing to finalize comprehensive rules that would govern stablecoins, crypto asset services, and market integrity standards under the UK’s new regulatory framework.
The , which was launched to ensure the regime is balanced, clear, and aligned with global best practices, marks the final formal step before the FCA moves to the implementation of the rules in law. With the crypto landscape rapidly evolving and market participants calling for certainty, industry watchers view the near-completion of the rulebook as a plus for the UK’s competitiveness in digital finance.
The UK FCA Consultation Ends With a Proposed Rulebook
The FCA’s consultation covered a wide range of measures for governing the crypto ecosystem more robustly and transparently. Key elements under consideration included licensing requirements for (CASPs), custody and secureguarding standards, anti-money-laundering (AML) obligations, and new guardrails for stablecoin issuance and redemption.
Under the proposed framework, custodial service providers, trading platforms, or advisory services involving crypto assets must meet specific regulatory thresholds, such as capital adequacy requirements, systems and controls, and ongoing compliance reporting. Personal and institutional protections were emphasized throughout the consultation, with the FCA signaling that investor securety and market integrity remain top priorities.
featured prominently in the consultation, with regulators exploring how to ensure adequate reserves, transparency in redemptions, and operational resilience. Ensuring that stablecoin issuers hold sufficient, high-quality liquid assets and maintain strict auditing protocols was a central theme of the proposed rules, reflecting lessons learned from past market stress events.
The consultation also addressed market abuse and surveillance, calling for systems that can detect and deter manipulation, insider trading, and other illicit behaviors in crypto markets. These measures aim to bring crypto trading practices more in line with traditional markets, bolstering confidence among institutional investors who have been cautious about entering markets perceived as less structured. Notably, the FCA’s proposed rulebook was designed with flexibility in mind, recognizing the rapid pace of blockchain innovation.
Industry Reactions and the Path to Implementation
As the consultation phase closes, reaction from industry stakeholders has been mixed but generally constructive. Many firms expressed support for clear, proportionate rules that enable long-term planning and institutional engagement. Market participants highlighted the value of regulatory certainty in attracting capital, hiring talent, and building products that comply with the .
At the identical time, some respondents urged the FCA to avoid overly burdensome requirements for small firms and beginups, noting that compliance costs could disproportionately affect ahead-stage innovators. The FCA has indicated it will now review all consultation responses before publishing final rules, which could then be laid before Parliament or enacted through secondary legislation.
