Latest Developments
On 16 December 2025, the Financial Conduct Authority (FCA) released three separate consultation papers (the CPs) as part of its ongoing work to establish a comprehensive regulatory regime for cryptoasset firms.
- CP25/40 - Regulating Cryptoasset Activities
- CP25/41 - Admissions & disclosures and market abuse regime for cryptoassets
- CP25/42 - A Prudential Regime for Cryptoasset Firms
The CPs are accompanied by the finalised legislation of the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025 (the Statutory Instrument). A draft Statutory Instrument was published by HM Treasury in April 2025, for the regulation of certain activities relating to cryptoassets (see our previous article here). The updated Statutory Instrument (published on 15 December 2025) now brings additional cryptoasset activities within the FCA’s regulatory remit and expands the regulatory perimeter initially proposed earlier in April 2025.
These consultations and statute are part of the foundations for the expansion of the FCA’s regulatory framework to cover a broader range of activities and risks beyond the FCA’s current limited focus on financial promotions and anti-money laundering requirements.
Market participants and stakeholders are invited to provide feedback on the FCA proposals by 12 February 2026. The FCA will consider all responses in line with its Crypto Roadmap and intends to publish final rules and guidance in policy statements in 2026. The new legislation is expected to be approved in 2026 and be in force from October 2027.
This briefing note sets out an overview of the key proposals and ...
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