Future UK regulatory regime for crypto – another FCA consultation paper!

On 23 January 2026, the Financial Conduct Authority (FCA) published a further consultation paper on the future UK regulatory regime for cryptoassets. CP26/4 is the second of two consultations on the application of the FCA Handbook for regulated activities and the seventh FCA consultation paper on the new regime.

Background

In December 2025, the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025 were laid in parliament. The new regime for cryptoassets is expected to go live in October 2027, with the application period for authorisation due to open in September 2026.

CP26/4, the longest of the FCA's cryptoasset consultation papers to date, builds on earlier consultation papers on different aspects of the new regime:

• CP25/14 – Stablecoin Issuance and Cryptoasset Custody
• CP25/15 – Prudential Regime for Cryptoasset Firms
• CP25/25 – Application of FCA Handbook for Regulated Cryptoasset Activities
• CP25/40 - Regulating Cryptoasset Activities
• CP25/41 - Admissions & Disclosures and Market Abuse Regime for Cryptoassets

• CP25/42 - Prudential Regime for Cryptoassets Part II

Please see More milestones on the UK's crypto roadmap for further details.

What's in CP26/4?

Consumer Duty – how the Duty will apply to cryptoasset firms, supported by additional non-Handbook guidance, so firms deliver good outcomes for retail customers.

Redress and Dispute Resolution (DISP) – the FCA's approach to complaints handling and redress, which aims to ensure consumers have clear routes to resolve issues.

Conduct of Business Standards (COBS) – applying key conduct rules to cryptoasset activities, so firms act fairly and transparently.

Credit for crypto purchases – rules on using credit to buy cryptoassets, to reduce risks of harm from borrowing to invest.

Training and competence – standards for staff knowledge and skills, so firms have competent people managing crypto services.

Senior Managers and Certification Regime (SMCR) – the FCA's approach to categorising cryptoasset firms under the SMCR.

Regulatory reporting (SUP 16) – requirements for firms to report data to the FCA, so it can monitor risks and supervise effectively.

Cryptoasset safeguarding – applying safeguarding rules to firms conducting multiple regulated cryptoasset activities, and the FCA's proposed approach to custody of specified investment cryptoassets.

Retail collateral treatment in cryptoasset borrowing – how retail consumers’ collateral should be treated when they borrow cryptoassets, to protect their interests.

Location policy for international cryptoasset firms – guidance clarifying the FCA's expectations on where cryptoasset firms should be based, to ensure effective oversight.

Deadline for comments

The CP closes for comments on 13 March 2026.

Here to help

Please let us know if you have any questions on the proposed regulatory regime for cryptoassets.