UK’s FCA Seeks Public Feedback on Proposed Crypto Standards Amid Regulatory Criticism

The Financial Conduct Authority (FCA) has launched a consultation on new minimum standards for cryptocurrency firms, aiming to align crypto regulations with traditional finance rules. The proposals, outlined in CP25/25, focus on operational resilience and anti-financial crime measures.

Regulators face mounting criticism over the UK's fragmented approach to crypto oversight, described as slow and restrictive. The FCA maintains these rules will bolster consumer protections while fostering a competitive environment for British firms globally.

A novel principle under consideration WOULD mandate crypto businesses to act in customers' best interests—a standard already prevalent in conventional financial markets. The move signals growing institutional recognition of digital assets despite persistent volatility risks.