The UK’s Financial Conduct Authority (FCA) has launched a public consultation on proposed crypto regulations, seeking feedback on areas like staking, lending, DeFi, and intermediaries.
This initiative follows draft legislation from the Treasury that would bring key crypto activities under FCA oversight, expanding its authority significantly. The move is part of the UK’s strategy to foster innovation while ensuring consumer protection and market integrity, aiming to rival the EU’s MiCA framework.
Public input is open until May 25, with further rules expected soon. The FCA already enforces AML rules, firm registration, and clearer consumer risk disclosures.
This is part of the UK’s phased approach to building a comprehensive crypto regulatory framework, with full implementation expected by 2026. The FCA aims to balance innovation with consumer protection and is also considering restrictions on credit-based crypto purchases.
UK Chancellor Rachel Reeves has reaffirmed the country’s ambition to become a global crypto hub, emphasizing international collaboration, especially with the U.S., to ensure responsible digital asset growth.
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