{"id":887956,"date":"2026-01-26T22:11:45","date_gmt":"2026-01-27T04:11:45","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2026\/01\/26\/uk-financial-watchdog-enters-final-consultation-phase-on-crypto-regulations\/"},"modified":"2026-01-26T22:11:45","modified_gmt":"2026-01-27T04:11:45","slug":"uk-financial-watchdog-enters-final-consultation-phase-on-crypto-regulations","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2026\/01\/26\/uk-financial-watchdog-enters-final-consultation-phase-on-crypto-regulations\/","title":{"rendered":"UK Financial Watchdog Enters Final Consultation Phase on Crypto Regulations"},"content":{"rendered":"<div>\n<div>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cimg.co\/wp-content\/uploads\/2025\/04\/23090551\/ayan-150x150.jpg\" alt>\n                    <\/p>\n<p>Crypto Journalist<\/p>\n<div>\n<p>Amin Ayan<\/p>\n<div>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cimg.co\/wp-content\/uploads\/2025\/04\/23090551\/ayan-150x150.jpg\" alt>\n                <\/p>\n<div>\n<div>\n<p>Crypto Journalist<\/p>\n<p><span>Amin Ayan<\/span><span class><img decoding=\"async\" src=\"https:\/\/cryptonews.com\/wp-content\/themes\/cryptonews\/images\/verification.svg\" alt=\"Verified\"><\/span>\n                    <\/p>\n<\/p><\/div>\n<div>\n<p>Part of the Team Since<\/p>\n<p>Apr 2025<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div>\n<p>About Author<\/p>\n<p>Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24\/7 Wall St. He has&#8230;<\/p>\n<\/p><\/div>\n<\/div><\/div>\n<\/p><\/div>\n<div>\n<p>Last updated:\u00a0<\/p>\n<p><time datetime=\"2026-01-26T07:01:26+00:00\">January 26, 2026<\/time>\n        <\/p>\n<\/p><\/div>\n<\/div>\n<p><img fetchpriority=\"high\" width=\"1200\" height=\"673\" src=\"https:\/\/cimg.co\/wp-content\/uploads\/2026\/01\/26062637\/1769408796-image-1769408428465_optimized.jpg\" alt=\"UK Financial Watchdog Enters Final Consultation Phase on Crypto Regulations\" decoding=\"async\"  ><\/p>\n<p>The UK\u2019s Financial Conduct Authority (FCA) has moved into the final stage of consultations on a sweeping set of proposed crypto regulations, as it advances the government\u2019s broader plan to bring digital assets firmly within the country\u2019s regulatory perimeter.<\/p>\n<div>\n<p><strong>Key Takeaways:<\/strong><\/p>\n<ul>\n<li><span>The FCA has entered the final consultation phase on 10 proposed rules to regulate the UK crypto market.<\/span><\/li>\n<li><span>The regulator aims to boost trust and transparency while acknowledging that crypto investment risks will remain.<\/span><\/li>\n<li><span>A new licensing regime for crypto firms is planned, with applications expected to open in September 2026.<\/span><\/li>\n<\/ul>\n<\/div>\n<p>In <a href=\"https:\/\/www.fca.org.uk\/news\/news-stories\/fca-seeks-feedback-further-rules-cryptoasset-firms\" target=\"_blank\">a recent statement<\/a>, the FCA said it is seeking feedback on 10 proposed rules, describing the move as the \u201cfinal step\u201d in its consultation process.<\/p>\n<p>The proposals are designed to shape how crypto firms operate in the UK, while aligning the sector more closely with standards applied across traditional financial markets.<\/p>\n<h2><span id=\"h-fca-says-new-crypto-rules-aim-to-build-trust-without-eliminating-risk\">FCA Says New Crypto Rules Aim to Build Trust Without Eliminating Risk<\/span><\/h2>\n<p>\u201cThese proposals continue our progress towards an open, sustainable and competitive crypto market that people can trust,\u201d the regulator said.<\/p>\n<p>At the same time, the FCA stressed that crypto investing will always carry risk, and regulation is intended to improve transparency and consumer understanding rather than eliminate volatility altogether.<\/p>\n<p>The consultation package spans a wide range of market activity.<\/p>\n<p>It includes proposed rules on business conduct standards, restrictions on using credit to purchase crypto, regulatory reporting requirements, asset safeguarding, and how retail collateral is treated when borrowing digital assets.<\/p>\n<p>Stakeholders have until March 12 to submit feedback.<\/p>\n<figure><\/figure>\n<p>The proposals were first outlined in December, when the FCA signaled its intention to regulate crypto in a manner broadly consistent with conventional financial services.<\/p>\n<p>Since then, the regulator says it has made \u201csignificant progress\u201d in refining the framework as part of the government\u2019s crypto roadmap.<\/p>\n<p>Earlier this month, the FCA also published an indicative timeline for a new licensing regime covering crypto asset service providers.<\/p>\n<p>Under the current plan, the application window for firms seeking authorization is expected to open in September 2026, though the regulator noted that details will be confirmed at a later date.<\/p>\n<p>Once in force, the licensing regime would impose tighter oversight on crypto businesses operating in the UK, requiring FCA approval and ongoing compliance with regulatory standards.<\/p>\n<h2><span id=\"h-uk-weighs-ban-on-crypto-donations\">UK Weighs Ban on Crypto Donations<\/span><\/h2>\n<p>As reported, the UK government is <a href=\"https:\/\/cryptonews.com\/news\/uk-crypto-political-donation-ban-farage-reform\/\">considering a ban on cryptocurrency donations<\/a> to political parties, a move that could directly affect Reform UK, which recently became the first party in the country to accept digital assets.<\/p>\n<p>The proposal is under review as part of the upcoming Elections Bill, according to people familiar with internal discussions, though officials have yet to formally confirm the plan.<\/p>\n<p>The debate follows Reform UK\u2019s push to present itself as Britain\u2019s most crypto-friendly party under the leadership of Nigel Farage.<\/p>\n<p>Furthermore, the UK government <a href=\"https:\/\/cryptonews.com\/news\/uk-no-gain-no-loss-defi-tax-proposal\/\">has moved a step closer<\/a> to overhauling how decentralized finance activity is taxed, backing a new framework that would spare users from triggering capital gains each time they deposit tokens into lending protocols or liquidity pools.<\/p>\n<p>\n                                    <a href=\"https:\/\/news.google.com\/publications\/CAAqKQgKIiNDQklTRkFnTWFoQUtEbU55ZVhCMGIyNWxkM011WTI5dEtBQVAB?ceid=US:en&#038;oc=3\" target=\"_blank\"><\/p>\n<p>                            <svg width=\"20\" height=\"16\" viewBox=\"0 0 20 16\" fill=\"none\">\n                            <path d=\"M19.6 5.36C19.6 5.48 19.6 5.66 19.54 5.78L17.2 12.8V5.6C17.2 4.94 16.66 4.4 16 4.4H12.82L12.52 3.8L11.86 2.36L15.34 3.32L18.58 4.16C19.18 4.28 19.6 4.82 19.6 5.36Z\" fill=\"#FF4131\" \/>\n                            <path d=\"M15.4 0.799997V3.26L11.92 2.3L11.74 1.88C11.44 1.28 10.72 0.979997 10.12 1.22L4.59998 3.38V0.799997C4.59998 0.499997 4.89998 0.199997 5.19998 0.199997H14.8C15.1 0.199997 15.4 0.499997 15.4 0.799997Z\" fill=\"#03A846\" \/>\n                            <path d=\"M12.82 4.4H4.00002C3.34002 4.4 2.80002 4.94 2.80002 5.6V11.42L0.520024 6.5C0.460024 6.26 0.400024 6.08 0.400024 5.9V5.84C0.400024 5.3 0.700024 4.82 1.24002 4.64L4.60002 3.32L10.06 1.22C10.72 0.979997 11.44 1.28 11.68 1.88L11.86 2.3L12.52 3.74L12.82 4.4Z\" fill=\"#FDBD04\" \/>\n                            <path d=\"M17.2 5.59999V14.6C17.2 15.26 16.66 15.8 16 15.8H4.00005C3.34005 15.8 2.80005 15.26 2.80005 14.6V5.59999C2.80005 4.93999 3.34005 4.39999 4.00005 4.39999H16C16.66 4.39999 17.2 4.93999 17.2 5.59999ZM9.40005 9.79999H7.00005V11H7.90005C7.60005 11.36 7.18005 11.6 6.70005 11.6C5.86005 11.6 5.20005 10.94 5.20005 10.1C5.20005 9.25999 5.86005 8.59999 6.70005 8.59999C7.12005 8.59999 7.48005 8.77999 7.78005 9.01999L8.62005 8.17999C8.14005 7.69999 7.48005 7.39999 6.70005 7.39999C5.20005 7.39999 4.00005 8.59999 4.00005 10.1C4.00005 11.6 5.20005 12.8 6.70005 12.8C7.90005 12.8 8.86005 12.08 9.22005 11C9.34005 10.7 9.40005 10.4 9.40005 10.1C9.40005 9.97999 9.40005 9.91999 9.40005 9.79999ZM14.8 7.39999H10.6V8.59999H14.8V7.39999ZM16 9.79999H10.6V11H16V9.79999ZM14.8 12.2H10.6V13.4H14.8V12.2Z\" fill=\"#0284FE\" \/>\n                            <\/svg><br \/>\n                                                                    Follow us on Google News                                    <\/a>\n                                <\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/cryptonews.com\/news\/uk-financial-watchdog-enters-final-consultation-phase-on-crypto-regulations\/\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Maribel Culton<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Crypto Journalist Amin Ayan Crypto Journalist Amin Ayan Part of the Team Since Apr 2025 About Author Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24\/7 Wall St. He has&#8230; Last updated:\u00a0 January 26, 2026 The<\/p>\n","protected":false},"author":1,"featured_media":887957,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[534,1180],"tags":[],"class_list":{"0":"post-887956","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-financial","8":"category-watchdog"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/887956","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=887956"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/887956\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/887957"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=887956"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=887956"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=887956"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}