UK financial regulators have opened a sweeping consultation on cryptocurrency asset listings, staking services, DeFi activity and trading platforms, marking one of the most comprehensive steps yet toward establishing a unified regulatory framework for the country’s digital asset market.
The review, announced Monday by the Financial Conduct Authority (FCA), forms a central part of the UK’s path toward full crypto regulation, which the finance ministry confirmed will take effect in October 2027.
What Happened
The FCA’s consultation seeks public feedback on proposed rules covering crypto admissions and disclosures, market abuse, exchange standards, intermediaries, lending and borrowing, prudential safeguards, and critically, how staking and decentralized finance should be regulated.
The regulator said it intends to apply principles broadly consistent with traditional financial markets, that is, clear investor information, proportionate obligations for firms, and enough flexibility to allow innovation to continue.
“Regulation is coming and we want to get it right,” said David Geale, the FCA’s executive director for payments and digital finance.
He added that the proposals aim to protect consumers while enabling sustainable market growth.
The consultation opens as the UK government sets a firm timeline for crypto regulation.
The finance ministry announced earlier in the day that legislation, expected to be introduced to Parliament imminently, will extend existing financial rules to cryptocurrency companies starting in 2027.
The approach aligns Britain more closely with the United States rather than the European Union, which adopted purpose-built crypto rules in 2024.
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Finance minister Rachel Reeves said the framework will strengthen consumer protections and help exclude bad actors from the market. Legal experts, including Travers Smith partner Natalie Lewis, noted that earlier drafts contained technical challenges that they hope the final bill will resolve.
The UK’s crypto regulatory architecture is being developed through several parallel efforts.
Alongside the FCA consultation, the Bank of England is finalizing its own regime for stablecoins used in everyday payments. Both regulators intend to complete their rulebooks by the end of 2026.
Despite regulatory progress, officials continue to warn that cryptoassets remain largely unregulated for now. The FCA reminded consumers that investing in digital assets still carries a risk of total loss. Firms, meanwhile, say the consultation finally gives them a clearer path to begin preparing for compliance.
Responses to the FCA’s consultation will remain open until 12 February 2026.
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