The United Kingdom accelerates the pace of the new regulatory regime of cryptography. The Financial Conduct Authority (FCA) published three articles in rapid succession in May 2025: a discussion on key policy positions (DP25 / 1) and two consultations on detailed rules (CP25 / 14 And CP25 / 15). This blog focuses on DP25 / 1. Please consult our next separate blogs on other proposals.
The FCA intends to regulate not only the trading platforms of British crypto-cups, but also certain non-British platforms abroad. All the crypto-tasset trading platforms abroad non-British that serve retail customers in the United Kingdom on a cross-border basis must be authorized by the FCA, and they will have to set up a physical presence in the United Kingdom in order to obtain authorization. It is currently not clear under what circumstances an exchange of crypto abroad would be considered as having retail customers in the United Kingdom-for example if there would be an examination of the ultimate customers if the exchange itself only served institutional intermediaries who have underlying retail customers.
Crypto-assembly intermediaries that buy / sell cryptocurrencies must also obtain authorization. In addition, if they wish to serve retail customers, the cryptoset in question must be admitted on at least one crypto-chat trading platform authorized in the United Kingdom. This means that the business model of the intermediary would depend on factors out of its will, that is to say that there would be an authorized cryptocurrency trading platform which has the relevant cryptoset listed on their platform. This could present significant challenges, especially at the start of the diet where trading platforms themselves also apply to be authorized.
While the FCA prefers to ban loans and cryptocurrency loans for retail customers, it leaves the door somewhat open by also exploring an alternative – to allow detail access but with improved driving rules on intermediaries (for example, requiring an assessment of customer credibility). Given the importance of loans / loans in the current cryptography ecosystem, an absolute prohibition on detail access can probably have significant consequences. It remains to be seen where the final determination will land.
For the puncture of crypto-tassets, a key proposal is to make the company responsible for the failure of the failures of their third-party service providers (for example those who provide technology to the company). This can potentially have a significant impact on staining companies (for example, they may need to reconsider their arrangements with third -party service providers).
