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

Core Viewpoint - The UK Financial Conduct Authority (FCA) is finalizing regulations for cryptocurrency firms, focusing on consumer duty and seeking feedback by March 12, with plans to open applications for cryptoasset permissions in September 2026 [1]. Group 1: Consumer Duty Regulations - The Consumer Duty is a rule that mandates financial firms to treat retail customers with good faith, avoid foreseeable harm, and assist in achieving financial goals [2]. - The FCA emphasizes that the consumer duty will set standards for crypto firms to ensure positive outcomes for customers while helping them manage their financial lives [3]. Group 2: Innovation and Risk Management - The FCA aims to foster a market where innovation can thrive while ensuring that consumers understand the associated risks, stating that regulation cannot eliminate all risks [4]. - The guidance is directed at firms planning to engage in regulated cryptoasset activities under upcoming legislation from the Treasury, which is set to take effect in December 2025 [4]. Group 3: Authorization and Compliance - Companies wishing to offer crypto-related services in the UK must be authorized under new rules effective from October 2027, including those already registered under money laundering regulations [5]. - The FCA began accepting applications for crypto firms in September, marking a clearer path towards formal regulation following Treasury legislation at the end of 2025 [6].