The U.K. regulator has taken a major step toward formal crypto oversight, publishing its final consultation on crypto rules and a new paper on how the FCA’s Consumer Duty will apply to digital-asset firms. What the FCA announced - The FCA has opened a consultation on how the Consumer Duty should be applied to cryptoasset firms and is seeking feedback by March 12. - It said it aims to open the application gateway for cryptoasset permissions in September 2026. - Firms offering crypto services will need to be authorized under new rules that come into force in October 2027 — a requirement that will also apply to firms already registered under the FCA’s money laundering regulations (MLRs). - The guidance is aimed at firms planning to undertake regulated cryptoasset activities under legislation introduced by the Treasury in December 2025, and also covers auditors, advisers, industry bodies and consumer groups. Why the Consumer Duty matters The Consumer Duty is an FCA rule that raises the standard for how retail customers must be treated: firms must act in good faith, avoid foreseeable harm, and help customers achieve their financial goals. That means clear information, fair pricing and ongoing support across the full customer journey — not just at point of sale. For crypto firms, the FCA says this should help ensure “good outcomes for customers while supporting them to navigate their financial lives.” Regulator stance: clarity, not eradication of risk The FCA stresses that its rules are intended to enable responsible innovation, not to smother it. At the same time the regulator warned that regulation cannot — and should not — eliminate all risk. Firms and investors must still understand the inherent risks of crypto products. Context and industry impact - The Treasury’s December 2025 legislation extended existing financial rules to cover crypto companies, creating the legal foundation for these FCA measures. - The FCA began accepting applications in September 2025 and has already registered some firms under the MLR framework — Ripple, issuer of the XRP payments token, is among those granted MLR registration. - The consultation and Consumer Duty guidance are both designed to give firms clarity ahead of the permission window opening in 2026 and the authorization deadline in 2027. What this means for crypto firms Operators, auditors and advisers should be preparing to meet higher consumer protection standards and to build compliance roadmaps aligned with the FCA’s timetable. The move narrows regulatory uncertainty in the U.K., but it also raises the compliance bar for companies that want to operate in the market. Bottom line The FCA’s latest consultations mark a tangible shift from legislative groundwork to implementation. For the U.K. crypto sector, the next 18–24 months will be about meeting new regulatory standards and demonstrating that crypto businesses can both innovate and protect consumers. Read more AI-generated news on: undefined/news

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