Firms may wish to consider reviewing relevant internal policies and updating them as necessary in an effort to enhance compliance frameworks. The FCA aims to have a regime that works to ensure consumer protection and trust while simultaneously supporting innovation. The FCA has started consulting on its plans for regulating the crypto assets industry. This suggests that, since the significant drop-off in open enforcement actions reported between March 2024 and March 2025, the number of open FCA investigations has remained steady. In response to a Freedom of Information Act request we recently submitted, the FCA confirmed that, as of 30 September 2025, it had open investigations into 116 firms and 248 individuals.

Policy papers and consultations

The closure underscores the difficulty of scaling institutional custody models in the current market. Some states have laws and ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals. The consultation closes at the end of March 2026, and we may see final rules toward the end of the year. In 2025, the FCA also consulted on the UK Sustainability Reporting Standards, which would implement the International Sustainability Standards Board’s sustainability disclosure standards.

By the time comprehensive UK regulation arrives, many projects will have already gone elsewhere,” he said. “The question now is whether rules will arrive in time to matter.” But the UK has also faced criticism for moving more slowly than other major jurisdictions in establishing a comprehensive crypto framework. Last month, the Treasury proposed legislation that would place cryptoasset activities under full FCA oversight, extending the regulator’s remit beyond its current focus on anti-money laundering registration.

These regulations cover a wide range of areas, including conduct of business, prudential requirements, consumer protection, and market integrity. It focuses on the regulation of conduct by both retail and wholesale financial services firms. The FCA regulates financial firms providing services to consumers, and maintains the integrity of the financial markets in the United Kingdom.

The FCA expects firms to have a risk-based approach to compliance. Therefore, it is important for firms to implement effective compliance strategies to ensure they are meeting the FCA’s expectations and avoiding any potential risks. The move is part of the FCA’s efforts to prevent money laundering and terrorist financing, and to protect consumers.

Services and information

• This dual approach is intended to foster a secure environment for AI development and integration, aligning with the FCA’s commitment to maintaining market integrity and consumer protection.
• The regulator said these boundaries reflect the current structure of financial compensation rules as crypto regulation develops.
• In addition, the FCA is able to ban financial products for up to a year while considering an indefinite ban.
• So how far should regulation go in protecting consumers while still allowing crypto innovation to develop?
• This policy is designed to ensure that firms operate in a way that is in the best interest of their customers.
• By understanding the reporting requirements and seeking guidance from legal and compliance professionals, firms can stay compliant with FCA regulations and avoid costly penalties.

Earlier this month, crypto payments firm Ripple said it had received approval from the FCA to expand its payments platform in the UK. Recent regulatory developments have already begun to affect industry players. Applying the same model to crypto, Meggs said, risks backfiring. In traditional finance, firms are typically required to maintain physical offices, senior management and operational control within the jurisdiction.

The focus now turns to the implementation phase, where the real-world effectiveness of these regulations will be tested. These businesses must now navigate the new compliance landscape to ensure that their offerings meet the updated standards. The rules are designed to reduce the likelihood of misinterpretation or misrepresentation of the financial products being offered. By establishing new guidelines for when and how securities can be offered to the public, the FCA aims to prevent misleading promotions and ensure that consumers are adequately informed before making investment decisions. The introduction of the Public Offers and Admissions to Trading regime represents a significant update in the way financial markets operate, specifically concerning the issuance of securities. As this regulatory shift progresses, all eyes will be on how market dynamics evolve and what further steps the FCA may take to enhance investor protection.

The regulator recently granted MLR registration to Ripple (XRP issuer), highlighting progress toward formal regulation. By introducing programs like the Sandbox13 in 2016, the FCA enables companies to try out new financial offerings in a monitored setting. The financial industry is going through changes due to advancements in technology and evolving beaxy exchange review customer preferences. The FCA regulates a variety of activities, making it one of the most extensive regulatory bodies globally. The FCA operates independently of government influence and is funded through fees collected from the firms it regulates.

The Order brings the provision of an ESG rating into regulation under the RAO by making it a specified kind of activity, when that rating is likely to influence a decision to make an investment specified in Part 3 of the RAO. Always conduct your own research or check with certified experts before investing, and be prepared for potential losses. Analytics Insight is an award-winning tech news publication that delivers in-depth insights into the major technology trends that impact the markets. Crypto investors will not receive compensation for investment losses if a crypto firm collapses. Despite tighter oversight, the FCA confirmed it will not extend Financial Services Compensation Scheme protection to cryptoassets. Firms already authorized under FSMA must vary their permissions to cover crypto activities.

Recent actions taken by the FCA

• The authority has significant powers, including the power to regulate conduct related to the marketing of financial products.
• The FCA is constantly updating and changing its regulations to keep pace with the ever-evolving financial landscape.
• In addition, crypto firms must meet standards on operational resilience, consumer duty, financial crime controls, and governance.
• While the new rules may cause some inconvenience to customers, they are an important step towards improving the safety and security of online payments.
• According to DOJ, the renewed investigation revealed “the scope of TIGO’s conduct, including that the criminal conduct continued during and after the Department’s closure of the first phase of the investigation and involved narcotrafficking proceeds that were used to generate cash for some of the bribe payments.”lv Under the DPA, TIGO is required to pay a $60 million criminal penalty and more than $58 million in forfeiture.
• FCA regulations are an essential part of the financial services industry.
• Walgreens also entered a seven-year memorandum of agreement with DEA and a five-year Corporate Integrity Agreement with HHS-OIG that require enhanced compliance, board oversight, training, and reporting.

According to the memorandum, DOJ intends to “protect American citizens and companies,” while “minimizing unnecessary burdens on American enterprise.”i These types of shifts in priorities are common at the beginning of a new Administration and may preview the types of enforcement actions (and resolutions) coming out of the Department in the next few years. This shift includes a heightened emphasis on trade and tariff fraud and the prosecution of companies providing “material support” to cartels and Transnational Criminal Organizations (“TCOs”) designated as Foreign Terrorist Organizations (“FTOs”). Department of Justice (“DOJ” or the “Department”) leaders announced significant recalibrations of the Department’s corporate enforcement priorities. In 2012 the company became the target of identity thieves, with hundreds of cases of UK individuals being chased by the company for repayment of loans they have never applied for.citation needed

The annual report is due within four months of the firm’s financial year-end. If the company is not listed on the register, it may be operating illegally and you should avoid investing with them. You can do this by checking the FCA’s register of authorized firms.

The FCA requires all UK crypto firms to obtain full authorization by October 2027, including those under MLR or FSMA registrations. By setting these standards, the FCA intends to build trust in the UK crypto sector while maintaining competitive and innovative markets. The FCA continually evolves to address emerging risks and challenges, demonstrating flexibility and dedication to protecting consumers and markets. The FCA adopts a proactive stance by focusing on high-risk areas that impact consumers and markets the most. The Financial Conduct Authority (FCA), established in 2013, regulates UK financial markets to ensure fairness, transparency, and consumer protection. Effective compliance strategies are essential for any firm operating within the financial sector to meet their regulatory obligations.

Payment Systems Regulator

Technical standards body means the technical standards body designated under subsection 8(1) of the Consumer-Driven Banking Act. Prescribed means prescribed by regulation. Insurance holding company means an insurance holding company as defined in subsection 2(1) of the Insurance Companies Act. Bank holding company means a bank holding company as defined in section 2 of the Bank Act; (société de portefeuille bancaire)

Bringing core crypto activities into the regulatory fold

But who needs to comply with FCA regulations? Why are FCA regulations important? Firms that fail to comply with FCA regulations can face fines, legal action, or even lose their license to operate. What are FCA regulations? The APPG concluded that the FCA’s actions are slow and inadequate, and its leaders are opaque and unaccountable, despite the critical need for effective consumer protection given the scale of financial crime in the UK.

In 2018 the FCA identified 88 firms providing loans however 85% of loans were provided by just ten players. FCA data sizes the UK market, in the twelve months to 2018, at 5.4 million loans per year. Payday loans are often used as a term by members of the public (and commentators) generically to refer to all forms of High-cost Short-term credit (HCSTC) including instalment loans, e.g. 3-9 month products, rather than just loans provided until the next pay day. The move could impact how Dutch residents manage their investment portfolios and crypto holdings.

Together, they form a core part of the Crypto Roadmap, which sets out a phased plan to bring cryptoassets fully under FSMA rules by 2027. Additionally, the reforms include the establishment of a Designated Activities Regime (DAR), which will govern public offers of qualifying cryptoassets, admissions to trade such assets and related market abuse. This is the first in a series of three articles examining the UK’s emerging regulatory framework for cryptoassets.

The widely criticized payday lender Wonga.com was coinmama exchange review one of the biggest finance firms in Britain. The writer Carl Packman has criticised the regulation of the industry. Its main complaint was that the APR was either not displayed at all or not displayed prominently enough, which is clearly required by UK advertising standards. There has been considerable criticism of the short-term loans market in the UK.

This follows the FCA’s earlier efforts in 2025 to gather industry feedback on crypto asset regulation.​ The move represents the UK’s commitment to creating a structured regulatory environment that balances innovation with investor luno exchange review protection in the digital asset space.​ The new conduct rules may prove an important feature of the year ahead for regulated firms. For firms potentially impacted by the changes to the UK’s cryptoasset regulatory regime, this year may represent a shift in their need to engage with the FCA and understand their future obligations. “Most critically, we need comprehensive regulation, not piecemeal rules.” Where the EU had moved decisively on crypto policy, the UK had wasted time deliberating, he argued. “Quality matters, but so does timing. Bringing crypto into the regulatory perimeter is a “crucial step in securing the UK’s position as a world-leading financial centre in the digital age,” she said. At present, crypto firms are required to register with the FCA primarily for AML purposes, including customer due diligence and transaction monitoring.

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Looking for more latest crypto news on related topic? Recently, the FCA announced a schedule for a new crypto licensing system that will begin in September 2026. The rules may require London-based companies to register, report transactions, and follow new advertising guidelines that inform users about risks. It also asks for feedback on proposed standards for how digital asset companies promote and sell their products in the country.