FCA Seeks Industry Input on Future Cryptoasset Trading Platform Regulation

The Financial Conduct Authority (FCA) is inviting feedback from stakeholders across the crypto sector on the regulation of cryptoasset trading platforms, in the next phase of its broader strategy to regulate digital assets. The move marks a critical milestone in the UK’s ambition to establish a robust and transparent crypto regulatory framework, bolstering both consumer protection and long-term market growth.

Towards Clear & Confident Crypto Regulation

In its latest discussion paper (DP), the FCA focuses on shaping rules for crypto intermediaries, lending and borrowing, staking, and decentralised finance (DeFi). The paper also probes whether the increasing use of credit to purchase crypto should trigger further regulatory restrictions, a pressing issue as crypto investments become more mainstream.

David Geale, Executive Director of Payments and Digital Finance at the FCA, commented:

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.

Part of a Wider Regulatory Roadmap

This DP forms part of the FCA’s broader Crypto Roadmap, which outlines a sequenced approach to future regulation. Alongside trading platforms, the roadmap covers critical areas such as:

• Market abuse, admissions and disclosures

• Stablecoins and custody arrangements

• Prudential risk management

The FCA’s proposals align with draft legislation recently published by HM Treasury. Once enacted, these laws will bring defined cryptoasset activities under the regulator’s purview. The discussion paper is also informed by extensive industry roundtables led by the FCA, ensuring that proposed rules reflect real-world operational insight.

Supporting the FCA’s 2025–2030 Strategy

The initiative comes on the heels of the FCA’s new five-year strategy, which outlines its focus on smarter regulation, promoting economic resilience, enhancing consumer confidence, and combatting financial crime. Regulation of crypto markets is central to this vision, particularly as the UK seeks to position itself as a global leader in financial innovation.

Have Your Say

The FCA is calling for responses by 13 June 2025, with a formal consultation on the final regulatory framework expected later this year. Firms, investors, and industry groups are encouraged to participate in shaping the future of the UK’s crypto landscape.

Read the press release here.