UK Crypto firms to behave like other financial services
22/09/2025
The Financial Conduct Authority (FCA) has issued proposals on the minimum standards that crypto firms in the UK will need to comply with.
The proposals mirror many requirements in the existing FCA handbook that already apply to traditional providers of investment services such as brokers, dealers and investment intermediaries.
They specify rules for
- Operational resilience
- Fit and proper test,
- Senior managers and certification regime, and
- Financial crime guidance
The consultation also discusses how the CONSUMER DUTY,
- Require CRYPTO firms to act to deliver good outcomes for their consumers,
- How complaints should be managed, including whether consumers should be able to refer them to the Financial Ombudsman Service.
The definitions of 'customer' and 'client' in the FCA's Principles for Business will include holders of a qualifying stablecoin.
However, certain principles will be disapplied in relation to crypto-asset trading platforms. These include
- Principle 6, regarding customers' interests, and
- Principle 9, regarding relationships of trust with professional clients.
The FCA intends to consult separately on conflicts of interest, later in 2025. This is due to risks arising from business models in the crypto-asset market, such as vertical integration.
The FCA SAID
- The proposals will help firms meet common standards so that consumers have a better idea of what to expect, although they will not remove the risks of investing in crypto.
- 'We want to develop a sustainable and competitive crypto sector balancing innovation, market integrity and trust',
Sources
- HM Treasury (draft legislation, April 2025) https://www.gov.uk/government/publications/regulatory-regime-for-cryptoassets-regulated-activities-draft-si-and-policy-note
- FCA (consultation paper) https://www.fca.org.uk/news/press-releases/fca-shares-proposals-promote-good-business-practices-amongst-crypto-firms
- Hogan Lovells https://www.hoganlovells.com/en/publications/uk-fca-consults-on-applying-existing-rules-to-cryptoasset-firms
- STEP UK News 15 May 2025: UK FCA invites comments on regulating crypto-asset activities https://www.step.org/industry-news/uk-fca-invites-comments-regulating-crypto-asset-activities
- https://www.step.org/industry-news/fca-consults-standards-uk-crypto-asset-firms?utm_source=news+digest&utm_medium=email&utm_campaign=UK+Industry+News+Digest+22925
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As well as owning and publishing Comsure's copyrighted works, Comsure wishes to use the copyright-protected works of others. To do so, Comsure is applying for exemptions in the UK copyright law. There are certain very specific situations where Comsure is permitted to do so without seeking permission from the owner. These exemptions are in the copyright sections of the Copyright, Designs and Patents Act 1988 (as amended)[www.gov.UK/government/publications/copyright-acts-and-related-laws]. Many situations allow for Comsure to apply for exemptions. These include 1] Non-commercial research and private study, 2] Criticism, review and reporting of current events, 3] the copying of works in any medium as long as the use is to illustrate a point. 4] no posting is for commercial purposes [payment]. (for a full list of exemptions, please read here www.gov.uk/guidance/exceptions-to-copyright]. Concerning the exceptions, Comsure will acknowledge the work of the source author by providing a link to the source material. Comsure claims no ownership of non-Comsure content. The non-Comsure articles posted on the Comsure website are deemed important, relevant, and newsworthy to a Comsure audience (e.g. regulated financial services and professional firms [DNFSBs]). Comsure does not wish to take any credit for the publication, and the publication can be read in full in its original form if you click the articles link that always accompanies the news item. Also, Comsure does not seek any payment for highlighting these important articles. If you want any article removed, Comsure will automatically do so on a reasonable request if you email info@comsuregroup.com.