UK regulator launches consultation on new cryptocurrency rules

According to Reuters, the UK Financial Conduct Authority (FCA) launched a broad consultation on Tuesday regarding a series of proposed rules for the cryptocurrency industry. This comes after the UK government announced a day earlier that it would implement regulation of the sector starting from October 2027. Alongside the publication of the relevant proposals, the FCA also released a research report showing that, over the past year, the proportion of UK adults holding cryptocurrencies has dropped by one third, from 12% to 8%. On Tuesday, the FCA stated that its rules would cover the listing of crypto assets, measures to prevent insider trading and market manipulation, standards for cryptocurrency trading platforms, and rules for brokers. The agency is also consulting on prudential requirements, regulatory provisions to clarify the risks of crypto staking, enhanced protections for both parties in crypto lending, and potential financial safeguards for crypto companies to manage risks. The FCA is seeking feedback on its proposals, with a deadline of February 12, 2026. The regulator has pledged to finalize the regulatory framework by the end of next year.