In its latest consultation paper, the Financial Conduct Authority (FCA) suggested minimum requirements for companies offering crypto services, echoing the standards already imposed on banks and investment firms. While the rules won’t eliminate the risks of investing in volatile digital assets, officials said they are meant to build trust by ensuring that firms meet consistent obligations.

The FCA is also probing issues specific to crypto. Among the questions on the table: should the UK’s Consumer Duty, which compels financial companies to deliver fair treatment and good outcomes, apply to crypto providers as well? And should crypto users be able to escalate complaints to the Financial Ombudsman Service, the country’s official dispute-resolution body?

Linking Domestic Rules to Global Cooperation

This regulatory step follows the Treasury’s draft legislation from April, which first outlined plans to bring crypto exchanges, dealers, and intermediaries in line with broader financial oversight. That initiative was described as a signal that Britain welcomes innovation but intends to shut the door on abuse and fraud.

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Meanwhile, international coordination is also in play. According to the Financial Times, UK Chancellor Rachel Reeves and U.S. Treasury Secretary Scott Bessent recently discussed how the two governments could align digital asset policy. Executives from Coinbase, Circle, Ripple, and traditional banking giants like Citi, Barclays, and Bank of America were said to be part of the talks.

A Turning Point for the UK Market

With both domestic proposals and cross-border discussions advancing, the UK appears poised to position itself as a major jurisdiction for crypto regulation. The outcome of the consultation will decide how far the FCA extends consumer protections into the digital economy — and how attractive the country becomes for firms seeking a compliant but innovative environment.

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