UK’s Financial Conduct Authority Seeks to Rein in Crypto with New Rules for 2027

The UK’s leading financial regulator the Financial Conduct Authority (FCA) took a major step last month toward a comprehensive crypto regulatory regime by launching a consultation on proposed rules for the industry that outlined a full spectrum of regulations that the FCA intends to implement by October 2027. The move follows the passing of the GENIUS Act by the US Congress in mid-2025, which seeks to establish federal oversight for stablecoin issues.

"Regulation is coming – and we want to get it right. We’ve listened to feedback, and now we’re setting out our proposals for the UK’s crypto regime," Reuters cited David Geale, executive director for payments and digital finance at the FCA, as saying.

While the UK has been widely viewed as somewhat hostile towards the crypto industry compared to the Trump administration’s vocally pro-crypto policies, the new proposals seek to close the regulatory gap in the UK with clearer rules and oversight. The scope of the proposals cover everything from how crypto assets can be listed for trading, to measures against insider trading and market manipulation, to governance standards for crypto brokers and exchanges.

One of the most notable aspects of the proposed rules is how the UK is positioning its crypto industry relative to other jurisdictions. The FCA explicitly aims to align its rules more closely with those of the US than the EU, which tends to view crypto with greater skepticism. From an economic standpoint, a more US-aligned regulatory trajectory may attract more crypto businesses to London rather than Paris or Berlin, where the EU’s strict MiCA (Markets in Crypto-Assets Regulation) is now coming into force.

The FCA’s consultation is also a direct response to the recent decline of the crypto market in the UK, which saw the proportion of adults holding crypto drop by a third in the last year. The decline is likely partly down to the global crypto downturn that began following the 2021 boom, encouraging the FCA to implement investor protections and attract expansion of the UK market.

For fintechs operating or thinking about operating in the UK, it’s important to prepare for increased, albeit clearer compliance demands, which will likely come with new rules concerning licensing, capital, and reporting. There’s also an opportunity to capitalize on the trust dividend which, while onerous, can confer legitimacy in an industry where there’s still widespread consumer and investor skepticism. 

For instance, marketing compliance as a trust point—such as being a fully FCA-authorized digital asset platform—will likely help attract customers and investors who have so far been wary of unregulated crypto. On the other hand, it may also mean that fintechs might need to change or discontinue more high-risk products, such as by capping lending volumes or delisting tokens that don’t meet new listing criteria. For those operating globally, the best approach is often to align with the strictest compliance regimes, since doing so will help future-proof operations across jurisdictions.