Crypto asset firms will be supported in innovating and scaling under new plans designed to make the UK a global hub for digital assets and attract fresh investment, according to the British Ministry of Finance.

The UK Financial Conduct Authority (FCA) has published proposals to regulate large parts of the crypto market for the first time. The framework includes rules for listing crypto assets, restrictions on insider trading, and capital requirements for companies operating in this fast-growing sector.

Government and regulator move in tandem

The proposals were released just one day after the UK government presented draft legislation targeting crypto asset service providers. Together, the measures aim to balance the UK’s ambition to become a global crypto hub with the need to protect consumers in a high-risk market.

“Bringing crypto into the regulatory perimeter is a crucial step in securing the UK’s position as a world-leading financial centre in the digital age,” said Chancellor of the Exchequer Rachel Reeves. “Clear rules give firms certainty to invest, innovate, and create high-skilled jobs, while ensuring strong consumer protections and excluding bad actors.”

Capital rules tighten for crypto firms

In practice, crypto asset companies will need to comply with existing capital requirements under MiFID, alongside new rules tailored specifically to the digital asset sector. Firms will also be required to hold a minimum level of liquid assets to allow an orderly wind-down without causing market disruption.

The FCA proposals further include rules for crypto brokers and intermediaries, measures to prevent insider trading and market manipulation, and regulations for companies offering staking services, where crypto assets are locked up in exchange for rewards.

Open questions around consumer protection

The regulator also addressed challenges related to decentralized finance, proposing that the same principles applied in traditional finance should also govern distributed finance systems.

Some areas remain unresolved. The FCA plans to consult in the first quarter of 2026 on whether crypto firms should fall under consumer duty rules and whether customers should be able to bring complaints to the Financial Ombudsman Service.

The final rules are expected by the end of 2026, with the full regulatory framework coming into effect in October 2027.

Sources:

https://www.ft.com/content/1e8bc50e-2d35-46cc-a7c3-11cacf5f5143

https://www.gov.uk/government/news/new-crypto-rules-to-unlock-growth-and-protect-customers

https://www.reuters.com/sustainability/boards-policy-regulation/uk-regulation-cryptoassets-start-october-2027-finance-ministry-says-2025-12-15/

https://dig.watch/updates/uk-sets-course-for-comprehensive-crypto-regulation