UK FCA to seek feedback through March on crypto consumer protection rules

The UK Financial Conduct Authority (FCA) has launched the final feedback process to establish consumer protection rules for cryptoasset firms. As the regulatory framework is overhauled in earnest, the institutional contours of the UK crypto market are gradually coming into view.

According to Coincudotcom on the 24th (local time), the FCA said it will accept comments on consumer duty rules to be applied to cryptoasset firms through March 12. Following the consultation, the FCA plans to begin opening the authorisation application process for cryptoasset firms from September 2026.

The regulatory discussion focuses on clarifying firms’ responsibilities to act in good faith toward consumers, prevent foreseeable harm and support consumers in making rational financial decisions. As a result, changes are expected across operations, including pricing, customer support and the way product information is disclosed.

The FCA has been aligning crypto regulation with a framework similar to that used for existing financial markets regulation. Separate consultations have previously been conducted on stablecoins, prudential regulation and conduct standards, and the final crypto regulatory framework is targeted for completion by October 2027.

FCA Chief Executive Nikhil Rathi said the aim is to foster a “competitive and sustainable cryptoasset industry,” adding that the proposed rules and guidance are intended to boost market confidence and protect consumers while supporting innovation and competition in the UK crypto market.

Industry participants say the consumer duty rules could raise trust in the UK crypto market while also affecting firms’ operating practices and cost structures. The FCA plans to continue engaging the industry through a combined online and offline consultation process.