U.K. FCA moves closer to crypto regulation with final consumer duty consultation

The UK Financial Conduct Authority (FCA) on Friday reached the final step of its consultation on regulation for cryptocurrency firms and published a new consultation on how consumer duty would apply to this sector.

In its statement, the FCA asked for feedback with a March 12 deadline on further rules and how consumer duty should be applied to cryptoasset companies operating in the United Kingdom. It also said it aims to open the application gateway for cryptoasset permissions in September 2026.

The Consumer Duty is an FCA rule that sets a high bar for how financial firms treat retail customers. It requires companies to act in good faith, avoid foreseeable harm and help people achieve their financial goals. Firms must offer clear information, fair pricing and support across the entire customer journey, not just at the point of sale.

In the case of companies offering digital asset services, “the consumer duty sets appropriate standards for crypto firms by ensuring they deliver good outcomes for customers while supporting them to navigate their financial lives,” the FCA said.

The FCA said the rule is not meant to stifle innovation and warned that regulation does not remove all the risks associated with financial services.

“We want a market where innovation can thrive, but where people understand the risks. But regulation can’t, and shouldn’t try to get rid of all risk. We want those interested in investing in crypto to understand that risk," the regulator said.

The guidance and consultation, the FCA added, is intended for firms planning to undertake regulated cryptoasset activities under legislation introduced by the Treasury in December 2025. It also applies to auditors, advisers, industry groups, and consumer organizations.

Earlier this month, the FCA said companies looking to offer crypto-related services in the country would be required to be authorized under new rules that take effect in October 2027. It said the requirement also applies to companies that are already registered as crypto companies under its money laundering regulations (MLRs). The authority awarded Ripple, the developer and issuer of payments token XRP, MLR registration as well.

The FCA started accepting applications in September, it said in a Thursday notice on its website. The road to formal regulation of cryptocurrency in the U.K. became clearer at the end of 2025 with legislation from the Treasury that extended existing financial rules to cover crypto companies.