FCA plans strict rules for crypto companies by 2026 – focus on consumer protection!

FCA plans strict rules for crypto companies by 2026 – focus on consumer protection!

The Financial Conduct Authority (FCA) has announced a comprehensive proposal for the regulation of crypto firms in the UK, to be implemented by 2026. According to Crypto News, this move aims to increase oversight of the crypto sector to both promote innovation and ensure consumer protection. A key aspect of the proposal is to adapt traditional financial rules to improve governance, resilience and crime prevention.

On September 17, the FCA announced that it had published a detailed consultation paper outlining the necessary changes to the existing regulatory framework for the digital asset sector. An important part of the plan is the expansion of the Senior Managers Regime, which is intended to create clear responsibilities for executives in crypto companies. The application of consumer duty is also being discussed to ensure that retail customers benefit from crypto services.

Feedback and implementation

The FCA plans to seek industry feedback by October and November 2025 to determine the final regulatory framework by 2026. Proposals for integrating cryptoasset disputes into the Financial Ombudsman Service are also being examined. These measures are intended to ensure that disputes are handled efficiently and increase confidence in the sector.

The FCA emphasizes that companies must meet strict operational resilience standards to deal with cyberattacks and other disruptions. These regulations are part of a comprehensive framework aimed at protecting consumers from fraudulent activities and bad business practices, even as volatility in cryptoassets is expected to persist. David Geale, the FCA’s director of payments and digital finance, highlights the need to develop a sustainable and competitive crypto sector.

Connection with previous drafts

This latest proposal follows HM Treasury's April 2025 draft, which expands the FCA's oversight of the sector. The FCA's strategy reflects the desire to put the crypto industry on a stable and responsible course that takes into account both the drive for innovation and the necessary consumer protection. The adjustments presented could be groundbreaking and influence both the market and the regulation of crypto financial products over the next few years.