UK FCA seeks public and industry views on cryptocurrency regulation
The Financial Conduct Authority intends to provide its views on the topics of intermediaries, staking, lending and borrowing, and decentralised finance.
Author: Camomile Shumba | Edited by: Parikshit Mishra Updated: May 2, 2025 12:11 PM Published: May 2, 2025 9:23 AM
Key points:
- The Financial Conduct Authority is seeking views on various aspects of crypto assets, including intermediaries and decentralised finance.
- The document under discussion is prepared in accordance with the Treasury's draft legislation, which aims to include certain crypto-related activities within the scope of FCA regulation.
- The FCA's aim is to create a cryptocurrency regime that promotes market integrity and consumer protection, while allowing innovation.
The UK Financial Conduct Authority (FCA) is seeking views on intermediaries, staking, lending, borrowing and decentralised finance (DeFi) in a recently published discussion paper.
The document follows legislation announced by the Treasury on Tuesday that, once passed, will bring certain types of crypto activity under the FCA's regulation, as detailed on the regulator's website.
“The crypto industry is an evolving area. It is currently largely unregulated and we are committed to creating a crypto regime that provides firms with the clarity they need to innovate safely, while ensuring adequate levels of market integrity and consumer protection,” said David Gil, executive director of payments and digital finance at the FCA.
The crypto industry said the regulator, which has overseen cryptocurrencies since 2020 as part of its anti-money laundering rules, had at times been overly strict. It has registered 51 companies out of 368 applications received over the past five years. A new authorisation regime for proposals is due to be implemented by 2026.
Among the issues discussed in the document is whether companies should be able to accept credit cards for cryptocurrency purchases.
“We are considering a number of restrictions, including a ban on the use of credit cards for the direct purchase of crypto assets and the use of credit lines provided by electronic money companies,” the document under discussion says.
The deadline for comments is 13 June, and the FCA will consult on the final version of the regime later this year.
UPDATE (May 2, 12:10 UTC): Increased number of firms approved since 2020, credit card purchases start in the fourth paragraph.
