UK financial regulator begins drafting virtual asset regulations…seeks input from across the industry

The UK financial regulator has launched a formal consultation to develop new regulatory proposals covering the virtual asset (cryptocurrency) industry as a whole. The UK government plans to bring virtual assets into the regulatory framework from October 2027.

According to Reuters on the 16th (Korean time), the Financial Conduct Authority (Financial Conduct Authority, FCA) published a wide-ranging regulatory proposal that includes virtual asset listings, prevention of insider trading and market manipulation, and standards for trading platforms and intermediaries.

The FCA said the proposal also includes disclosure of staking risks, strengthened protections for virtual asset lenders and borrowers, financial soundness requirements, and risk management frameworks for virtual asset firms. The aim is to raise exchange operations and overall market order to the level of regulated finance.

The FCA also released survey results on virtual asset holdings in the UK alongside the proposal. It found that the share of UK adults holding virtual assets fell from 12% to 8% over the past year.

David Gill, head of payments and digital finance at the FCA, said, "Regulation has already begun," adding, "We aim to establish a framework that achieves consumer protection, supports innovation, and builds trust simultaneously." The FCA plans to collect feedback until February 12 next year and finalize the regulatory framework by the end of 2026.