On 28 May 2025, the Financial Conduct Authority (“FCA”) published further consultation papers on the proposed approach to regulating crypto-asset activities in the United Kingdom. These documents contain an extensive discussion of aspects such as stablecoin issuance, crypto-asset custody services, and prudential requirements applicable to businesses engaging in crypto-asset activities in the UK. This marks the beginning of a consultation period lasting until 31 July 2025, during which organizations, market participants, and other interested parties may submit their comments and objections regarding the content of the above-mentioned documents.
The main objectives of the future regulations are:
- creation of a coherent, resilient, and competitive crypto-asset market that operates for consumers and ensures their protection;
- discouraging criminals from using FCA-regulated stablecoins;
- ensuring that available products reflect real value, meet consumer expectations, and are offered in a fair manner;
- increase of consumer trust in entities conducting crypto-asset activities;
- reduction of the number of failing crypto-asset businesses, as well as associated with it harm and disruptions;
- introduction of a requirement for firms to maintain an appropriate level of own funds and implement effective and proportionate risk management policies and procedures.
The content of the above-mentioned documents is available at the following links:
https://www.fca.org.uk/publications/consultation-papers/cp25-14-stablecoin-issuance-cryptoasset-custody
https://www.fca.org.uk/publications/consultation-papers/cp25-15-prudential-regime-cryptoasset-firms