The UK’s Financial Conduct Authority (FCA) has moved into the final consultation stage of a broad crypto regulatory framework that will bring digital asset firms under its core financial rules. Once finalized, crypto businesses serving UK users will need full FCA authorization, with the new system expected to phase in from 2026 and go fully live in 2027.
The framework applies traditional finance standards to crypto, including Consumer Duty rules, business conduct requirements, asset custody safeguards, reporting obligations, and stronger accountability for senior managers. It may also limit the use of borrowed money or credit cards to buy crypto.
For users, this could mean safer platforms, clearer disclosures, and fewer unregulated operators. For firms, it brings higher compliance costs and stricter oversight, which may push smaller or riskier platforms out of the UK market.
Overall, the UK is shifting toward tighter supervision of crypto to improve trust and consumer protection, while raising the regulatory bar for firms.