The UK’s financial watchdog has entered the final phase of consultations on a sweeping set of proposed crypto regulations, marking a key milestone in the government’s efforts to bring digital assets firmly within the country’s regulatory framework.

The Financial Conduct Authority (FCA) said on Friday it is seeking feedback on 10 proposed rules for the crypto sector, describing the move as the “final step” of its consultation process.

The proposals form part of the government’s broader crypto roadmap and are intended to align the sector more closely with standards applied across traditional financial markets.

“These proposals continue our progress towards an open, sustainable and competitive crypto market that people can trust,” the FCA said.
“At the same time, risks remain, and we want a market where innovation can thrive, but where people understand the risks. But regulation can’t — and shouldn’t try — to get rid of all risk. We want those interested in investing in crypto to understand that risk.”

The consultation covers business conduct standards, restrictions on using credit to purchase digital assets, regulatory reporting requirements, asset safeguarding, and how retail collateral is treated when borrowing tokens.

Stakeholders have until March 12 to submit feedback on the proposals.

The regulator first outlined the package in December and signaled an intent to align crypto oversight with approaches used in traditional financial services.

According to the FCA, these proposals are intended to improve transparency and consumer understanding without attempting to eliminate volatility or risk. “Regulation can’t — and shouldn’t try — to get rid of all risk,” it said.

Alongside the consultation, the FCA is laying the groundwork for a new licensing regime that would place tighter oversight on crypto firms operating in the UK.

Earlier this month, the regulator published an indicative timeline for crypto asset service providers to begin registering under the new system.

“We expect the application period will open in September 2026,” the FCA said, noting that the timeline will be confirmed in due course.

Once implemented, the regime would require crypto firms to obtain FCA authorization to operate in the UK, subjecting them to ongoing compliance and supervisory requirements.

The FCA’s consultation comes as crypto policy debates widen beyond market conduct.

Separately, the UK government is considering whether to ban cryptocurrency donations to political parties.

The proposal is reportedly being reviewed as part of the upcoming Elections Bill, though officials have not formally confirmed the plan.

The discussion follows Reform UK’s decision to become the first political party in the country to accept crypto donations, under the leadership of Nigel Farage.

In parallel, the government has also moved closer to overhauling the taxation of decentralized finance activity.

Officials have backed a new framework that would spare users from triggering capital gains tax each time they deposit tokens into lending protocols or liquidity pools.

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