UK’s FCA Proposes Stricter Crypto Regulations Under CP26/4
The Financial Conduct Authority (FCA) has unveiled its CP26/4 proposal, aiming to impose stricter rules on crypto firms operating in the UK. Retail-focused crypto businesses will now need to demonstrate fair value, transparency, and robust consumer support, aligning with existing Consumer Duty standards for authorized firms. Trading between participants on UK-authorized crypto platforms remains exempt.
Product manufacturers in the crypto space—including issuers of qualifying cryptoassets, stablecoins, lending platforms, and UK trading venues—will face clearer regulatory definitions. The FCA’s draft guidance formalizes these categories, bringing structure to a rapidly evolving market.
Complaint handling will mirror traditional financial services, with strict timelines and formal procedures. The Financial Ombudsman Service will extend its reach to crypto, offering binding redress of up to £350,000 for consumers. Notably, the Financial Services Compensation Scheme will not cover crypto activities, leaving investors unprotected against firm failures.
