The Financial Conduct Authority opened a public consultation Tuesday on proposed cryptocurrency regulations, unveiling standards that would govern digital asset trading, lending and platform operations when enforcement begins in October 2027. The British regulator released the framework one day after the government announced the implementation timeline.
What Happened: Regulatory Framework
The FCA outlined rules covering crypto asset listings, insider trading prohibitions, market manipulation controls, trading platform standards and broker requirements.
The consultation arrives as UK adult cryptocurrency ownership declined to 8% from 12% over the past year, according to FCA research published alongside the proposals.
The agency is also seeking input on prudential standards for firms, disclosure requirements for staking products, protections for lending and borrowing services, and financial safeguards to manage institutional risks.
David Geale, executive director for payments and digital finance at the regulator, said the agency aims to establish "a regime that protects consumers, supports innovation and promotes trust."
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Why It Matters: International Alignment
Britain is pursuing cryptocurrency regulation that aligns with United States approaches rather than European Union standards, as regulators worldwide develop frameworks for the digital asset industry.
The FCA set a Feb. 12, 2026, deadline for public feedback and committed to finalizing rules by year-end 2026.
The consultation represents a significant shift in how major financial centers approach cryptocurrency oversight, with the timing and scope designed to balance market development against investor protection concerns.
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