The Financial Conduct Authority (FCA) of the United Kingdom is preparing changes to its oversight approaches for crypto companies, proposing adapted rules that take into account the unique characteristics of the crypto market. At the same time, starting in 2026, the digital asset sector will be fully integrated into the national regulatory framework, but companies will already receive certain exemptions from existing financial norms.
This is reported by Finway
FCA Recognizes the Unique Features of Crypto Assets and Revises Requirements
In a recently published consultation document, the FCA emphasized that standard financial regulations cannot be automatically applied to cryptocurrencies. Among the reasons are the different technological foundations, specific risks, and differences from traditional financial instruments. According to David Gill, the FCA’s Executive Director for Payments and Digital Finance, it is impractical to transfer traditional financial rules to the crypto sphere.
“We operate on the principle: if the risk is the same — then the regulatory outcome should be the same,” he said in an interview with the Financial Times.
He also noted that some aspects differ significantly, requiring a tailored approach. Since 2019, British crypto groups have been required to register with the FCA to comply with anti-money laundering, counter-terrorism financing, and customer verification standards. Now, a transition to a more comprehensive regulatory framework is beginning.
New Standards and Exemptions for Crypto Companies
Some key principles of the FCA will not fully apply to crypto platforms. For example, rules regarding conducting business with honesty, due diligence, and care, or considering customer interests will be applied partially. Guidance, systems, and internal controls in crypto groups will also be regulated less stringently than in banks and investment firms.
Due to the high volatility of crypto assets, companies will not be required to provide clients with a “cooling-off period” or the right to cancel a purchase. Distributed Ledger Technology (DLT), which operates without intermediaries, will not be considered outsourcing and therefore will not be subject to specific risk management requirements.
At the same time, in the area of operational risks, requirements for crypto companies will become stricter. Following a massive $1.5 billion wallet hack at Bybit, the FCA stated the need for stringent operational resilience oversight for all sector players. David Gill emphasized:
“If you position yourself as a business operating 24/7, but are unable to deliver on that — it will be a problem,” Gill stressed.
The regulator is also considering implementing consumer duty principles that would compel companies to ensure fair conditions for clients and allow users to appeal to the Financial Ombudsman.
Gill added that the new approach is both a challenge and an opportunity for the market, as risks remain significant, and clients must be aware of the possibility of losing their funds, but the industry has growth potential.
Starting January 1, 2026, new rules will come into effect in the United Kingdom requiring crypto companies to report to tax authorities about each user and all transactions conducted. Additionally, the government recently presented a strategy for the digital transformation of financial markets with a focus on blockchain.