The UK financial sector regulator, the Financial Conduct Authority (FCA), has initiated a public discussion regarding upcoming regulations for cryptocurrency assets in the country. This is an important step towards creating a more transparent and secure crypto market that addresses the needs of innovative companies and investors.
This is reported by Business • Media
Discussion of Key Aspects of the Crypto Market
As part of the open dialogue, the FCA has called on the public, businesses, and experts to share their proposals by June 13, 2025. The focus is on regulating areas such as staking, lending, borrowing, decentralized financial platforms (DeFi), and the activities of cryptocurrency intermediaries.
It is expected that the new regulations will cover all major cryptocurrency operations and ensure their compliance with FCA standards. This aligns with recent legislative initiatives from the UK Treasury, which has amended the Financial Services and Markets Act 2000, particularly regarding the legal status of staking.
“The crypto industry is rapidly evolving, but it remains largely unregulated. We aim to create a framework that provides clarity for innovative companies while ensuring an appropriate level of market and consumer protection,” said FCA Executive Director for Digital Finance and Payments David Gill.
Main Directions for Future Regulation
- Consumer Protection and Market Integrity. Special attention is given to preventing financial abuses and ensuring transparency in cryptocurrency operations.
- Regulation of Decentralized Platforms and Lending Mechanisms. Requirements for DeFi platforms and aspects of lending in the crypto sphere are being discussed.
- Regulation of Cryptocurrency Exchanges. This includes the structure of branches and subsidiaries to enhance security and transparency in the market.
- Issues Related to Purchasing Cryptocurrencies with Borrowed Funds. This is part of the FCA’s efforts to prevent financial abuses and protect investors.
The discussion will continue until June 13, 2025, after which the FCA will publish the final version of the new regulations. This process is part of the regulator’s five-year strategy (2025–2030), which aims to support innovation, protect consumer rights, and combat financial crime.
It is worth noting that in December 2024, the platform pump.fun ceased operations in the UK due to FCA warnings regarding compliance with regulatory requirements.