FCA moves towards the final step of the crypto regulatory framework, tightening investor protection standards

The UK Financial Conduct Authority (FCA) has entered the final stage of consultation on regulations for crypto companies, with a deadline of March 12th to gather feedback on how to implement the Consumer Duty rules for digital asset businesses.

FCA announced that it will open the licensing portal for crypto operations in September 2026. Under the new schedule, all crypto service providers — including companies registered under anti-money laundering (MLR) regulations — will need full authorization by October 2027.

Consumer Duty sets high standards for how financial companies treat individual customers. The regulation requires businesses to act in good faith, avoid foreseeable harm, and support customers in achieving their financial goals. Companies must also provide clear information, reasonable fees, and ongoing support throughout the customer journey.

According to FCA, when applied to the digital asset sector, these rules aim to ensure crypto companies deliver positive outcomes for customers, while helping them understand and navigate financial decisions more effectively.

The regulatory agency emphasizes that the goal of these regulations is not to stifle innovation, but it also cannot and should not eliminate investment risks entirely. FCA wants crypto investors to be fully aware of the inherent risks in the market.

This guidance and consultation are targeted at businesses planning to operate within the new legal framework issued by the UK Treasury at the end of 2025, and also apply to auditors, advisors, industry associations, and consumer protection organizations.