On 17 September 2025, the United Kingdom Financial Conduct Authority (UK FCA) published proposals setting out minimum standards for crypto firms. The consultation “Application of FCA Handbook for Regulated Cryptoasset Activities” seeks feedback on rules covering operational resilience, systems and controls to combat financial crime, and consumer protection. The proposals mirror requirements already applicable to traditional financial institutions but are designed to be proportionate so that United Kingdom firms can remain internationally competitive. The consultation also opens discussion on whether the United Kingdom Consumer Duty should extend to crypto firms, requiring them to deliver good outcomes for consumers. Views are also sought on complaints management, including whether consumers should be able to escalate disputes to the United Kingdom Financial Ombudsman Service. The deadline for responses to the consultation paper is 12 November 2025, while responses to the discussion paper must be submitted by 15 October 2025.
Chronological Background
- April 2025: Her Majesty’s Treasury (HMT) published draft legislation to bring crypto firms into the United Kingdom’s financial regulatory perimeter.
- 17 September 2025: The United Kingdom FCA published a consultation paper and a discussion paper on crypto firm standards.
- 15 October 2025: Deadline for feedback on the discussion paper.
- 12 November 2025: Deadline for feedback on the consultation paper.
- In the early 2026, Final rules are likely to be published by the United Kingdom FCA, once legislation is in place.
Regulatory Objectives of the “Consultation on Standards for Crypto Firms”
The consultation aims to:
- Establish minimum standards for crypto firms, including resilience and anti-crime systems.
- Discuss how Consumer Duty principles could apply to crypto, shaping consumer outcomes.
- Gather views on complaints handling, including referral to the United Kingdom Financial Ombudsman Service.
- Ensure a proportionate approach that allows firms to remain competitive internationally while enhancing consumer trust.
The open question is the application of the Consumer Duty — a framework designed to ensure fair treatment and positive outcomes for consumers. Extending this to crypto would mark a significant shift, signalling that consumer protections must evolve with new financial products.
Crypto firms operating in the United Kingdom, should prepare for operational, governance, and complaint-handling standards that will soon be mandatory. For consumers, the outcome should mean greater clarity, transparency, and protection when engaging with crypto products.
