The Financial Conduct Authority has published a consultation paper on how existing FCA Handbook rules would apply to firms carrying out forthcoming regulated cryptoasset activities, ahead of planned legislation that would bring specified cryptoasset activities within the FCA’s remit and require firms to be authorised before operating in the UK. The proposals would apply cross-cutting Handbook standards broadly across cryptoasset firms, aiming to align them with expectations for FSMA-authorised firms. This includes High Level Standards and supervision (including the Principles for Businesses excluding the Consumer Duty), governance and accountability requirements through SYSC and the Senior Managers and Certification Regime, the FCA’s financial crime framework (including SYSC 6 and associated guidance), and operational resilience, including extending the SYSC 15A operational resilience framework to all cryptoasset firms. The FCA also proposes expanding the Handbook definition of “designated investment business” to capture qualifying cryptoasset activities, applying the ESG Sourcebook requirements that apply to all authorised firms (including the anti-greenwashing rule) without introducing new cryptoasset-specific sustainability disclosures, and treating use of permissionless distributed ledger technologies as not being an outsourcing arrangement under SYSC 8. Separate discussion chapters seek views on future application of the Consumer Duty, complaint handling and potential access to the Financial Ombudsman Service, and how to approach conduct of business and product governance requirements for regulated cryptoasset activities. Comments on the proposed rules and guidance in chapters 1–5 are due by 12 November 2025, while responses to the discussion chapters 6–7 are due by 15 October 2025. The FCA plans further consultations on activity-specific rules and other elements in its Crypto Roadmap, and expects to publish final rules and guidance in Policy Statements in 2026.

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