The Financial Conduct Authority (FCA) has published a discussion paper on the management of specific cryptoasset activities ahead of introducing legislation to regulate the sector.

In its discussion paper ‘Regulating Cryptoasset Activities’ (issued on 2 May 2025), the FCA is seeking views on its approach to regulating cryptoasset trading platforms, intermediaries, cryptoasset lending and borrowing, staking and decentralised finance, and the use of credit to purchase cryptoassets.

The regulator believes that effective regulation is crucial to developing a “safe, competitive, and sustainable cryptoasset sector.”

“Long-term confidence in cryptoassets depends on clear regulation to promote market integrity and appropriate consumer protection,” said the FCA in its accompanying statement.

David Geale, executive director of payments and digital finance at the FCA, said: “Crypto is a growing industry. Currently largely unregulated, we want to create a crypto regime that gives firms the clarity they need to safely innovate, while delivering appropriate levels of market integrity and consumer protection.

“Our aim is to drive sustainable, long-term growth of crypto in the UK. We’re asking whether we have got the balance right.”

The discussion paper is the latest part of the FCA’s Crypto Roadmap, which provides a timeline for consulting on future cryptoasset regulation.

Other areas in the roadmap include market abuse, admissions and disclosures, stablecoins and custody, and prudential considerations.

As more people use digital currencies, crypto remains at the forefront of the FCA’s plans for this year, with the regulator hoping to launch its regulatory regime in 2026.

Under the government’s plans, the FCA’s regulatory remit for cryptoassets will expand from the current Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) and Financial Promotions regime to a more comprehensive crypto regime.

This discussion paper follows the publication of draft legislation by the Treasury that, once passed, will bring specific cryptoasset activities within the FCA’s regulation.

The FCA is hoping to hear from a wide range of organisations and individuals that participate in the cryptoasset sector, including finance services participants, consumer groups and individual consumers, and academics and think-tanks.

The deadline for feedback is 13 June 2025.

Click here for more information about the current rules governing the cryptoasset industry.

Compliance Solutions for Regulated Businesses

At the Regulation & Compliance Office (RACO), we can help organisations of all shapes and sizes from across different sectors undertake a review of their policies, controls, and procedures to ensure that they are compliant with AML regulations and, therefore, avoid any breaches.

A review of this nature provides valuable insight into a business when performed correctly. Along with an overview of risk, these crucial assessments also highlight issues within the business, so it is essential to undertake a proper review. All of a company’s building blocks must be considered, including its staff, clients, operations, and finances.

By working withthe Regulation & Compliance Office, a business can be assured that we will bring the required level of knowledge and expertise needed to perform the review, which adds value to the business and is not simply a box-ticking exercise. Our team can also provide a full range of services that include:

• Consultancy.
• Compliance Policies.
• Training.
• Handbooks.
• Auditing.

Our services focus on businesses’ anti-money laundering and regulatory requirements through the implementation of effective policies, procedures, training, and consultancy. We also provide continued monitoring of staff and ongoing training to ensure that everyone within a business is aware of the latest requirements and complies with their responsibilities.

We offer a full range of services focused on ensuring businesses across all regulated sectors create, maintain and evidence their compliance with the requirements of their regulators and legislation. We work with businesses of all sizes, from the smaller high street or niche businesses to the large multi-office and multinationals.

Get In Touch

We adopt a sensible and pragmatic approach to fees, ensuring we are competitive and always add value. As necessary, we will agree on packaged services to control cost and enable clients to spread payments to alleviate cash flow, yet ensure services are provided when needed.

If you want to discuss our services in more detail, contact us at 0203 985 8550, email us at info@regulationandcomplianceoffice.co.uk or complete an enquiry form.