United Kingdom proposes to adapt financial rules to crypto, with flexible approach

By Hannah Pérez

The FCA published a consultation document that raises standards based on the principle of “Same risk, same regulatory result“, But with proportional adjustments that recognize the”unique nature “ of cryptocurrencies.

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• The FCA proposes flexible rules for cryptocurrencies in the United Kingdom.
• It proposes to adapt the existing financial rules, but with proportional adjustments.
• The rules “will not eliminate the risks of investing in crypto,” said the regulator.
• The objective is to balance innovation with market integrity and trust.
• The United Kingdom Treasury has already published a bill, and new rules are expected by 2026.

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The United Kingdom’s financial regulators are pursuing a balanced approach, adapting traditional financial rules to the peculiarities of the cryptocurrency sector, such as volatility and technology Blockchain underlying.

In a consultation document published on Wednesday, the United Kingdom Financial Behavior Authority (FCA) presented proposals to adapt its existing financial standards to cryptocurrency companies, recognizing the “unique nature “ of these assets.

The proposal, which arises after the draft legislation of the British Treasury in April that expands the supervision of the FCA, seeks completely integrate crypto activities into the country’s regulatory framework from 2026balancing innovation with consumer protection and the reduction of financial crimes, according to several means.

Regulated activities will include the issuance of Stablecoins qualified, cryptocurrency custody, the operation of qualified crypto trade platforms (CATP), intermediation and Staking. Companies must obtain authorization under the Law on Financial Services and Markets (FSMA) to operate in the United Kingdom.

FCA adapts the rules to cryptocurrencies

According to the official document of the FCA, some of the requirements already applied to other financial companies – including operational resilience, the responsibility for senior management, solid systems and controls and safeguards against financial crimes – will continue to apply.

The rules are based on the principle of “Same risk, same regulatory result“, But with proportional adjustments, the FCA said, since the regulator recognized that cryptocurrencies do not raise the same systemic risks as traditional financial institutions, which allows some regulatory flexibility.

For example, crypto companies would face similar requirements to consumer credit suppliers, instead of the strictest applied to banks. This includes operational resilience standards against cyber attacks and failures, but with flexibilities: a period of reflection for transactions will not be required due to the volatility of digital assets prices, and technology Blockchain Without permission it will not be classified as subcontracting that requires additional risk management.

The proposal also explores to extend the duty of the consumer, which requires good results for customers, to the crypto sector, and allow access to the service of the Financial Ombudsman (FOS) to solve disputes. In addition, the Code of Business Conduct (COBS) and the Product Intervention and Governance Code (PROD), still to be reviewed.

Balance between innovation and integrity

In the summary chapter, the FCA emphasized that its objectives are to protect consumers, reduce financial crimes and support growth, guaranteeing at the same time that the United Kingdom companies remain competitive internationally. He pointed out that protections for retail investors would remain in force.

The FCA, which estimates that the global cryptocurrency market reaches 3.3 billion dollars for July 2025, with 12% of British adults possessing these assets, acknowledged that although the proposals “They will not eliminate the risks of investing in cryptocurrencies “They will guarantee that companies comply with minimal standards on crime prevention, resilience and governance.

“We want to develop a sustainable and competitive cryptographic sector – that balances innovation, market integrity and trust“, Said the executive director of FCA Digital Payments and Finance, David Geale, in a statement.

Regulatory collaboration with the United States

The publication of the FCA consultation occurs after a report on Tuesday that advanced the joint efforts of the US governments and the United Kingdom to coordinate their efforts in terms of supervision on the cryptocurrency market.

The Treasury of His Majesty of the United Kingdom and his Chancellor, Rachel Reeves, announced for the first time the plans to submit to the exchanges and suppliers of cryptocurrencies to new rules, when they published a bill in April. At that time, the British government had also revealed a regulatory collaboration effort for crypto with the United States.

The comments of this new consultation must be submitted in October and November, and the final rules are planned to be published in 2026 after more industry consultations about the specific requirements of each activity.

The FCA monitors global regimes and collaborations, as with the US, to respond and stay competitive to the new most friendly regulatory winds for cryptocurrencies under the administration of Donald Trump.

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Article written with the help of AI, edited by Diariobitcoin

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