The Financial Conduct Authority (FCA) outlined its roadmap for future regulation of cryptocurrency as the sector continues to grow both in the UK and globally.
According to the regulator’s latest research on consumer attitudes towards crypto, 12% of UK adults now own some form of cryptocurrency, up from 10%, whilst awareness of the space has grown from 91% to 93%.
Information from family and friends is the main source of information, but only one in 10 said that they had done no research before investing.
Crypto valuations have rocketed this year, particularly Bitcoin and to a lesser extent Ethereum. Bitcoin’s growth has been spearheaded by a number of political-economic factors, notably the US approval of Bitcoin ETFs, with the same occurring for Ethereum later in the year, and the recent election of pro-crypto Donald Trump as US President.
Bitcoin reached its highest ever value shortly after the US presidential vote, and at times was nearing £100k per coin. This growth in value has been mirrored among UK crypto-holders according to the FCA, with the average value of crypto held by British people increasing from £1,595 to £1,842.
Matthew Long, Director of Payments and Digital Assets at the FCA, said: ‘Our research results highlight the need for clear regulation that supports a safe, competitive, and sustainable crypto sector in the UK.”
The FCA’s 2025 crypto crusade
Regulating the fast growing crypto sector has been a focus of the government for some time, though it was more notable under the previous Conservative administration than under the current Labour one.
Former PM (and former Chancellor of the Exchequer) Rishi Sunak was particularly keen on digital assets. Conservative legislators such as former MP Lisa Cameron have also outlined the previous government’s ‘Digital Britain’ ambitions to Payment Expert.
The Labour government has been less vocal about crypto, focusing instead on other areas of finance like Open Banking, digital identity and fraud prevention and reimbursement. It has taken some action though, launching the Property (Digital Assets) Bill to parliament in September, which if passed will class digital holdings as personal property under the law.
In its roadmap for the sector, the regulator has earmarked a number of quarterly milestones it aims to achieve. The regulator states that it is committed to working with the government to better regulate British cryptocurrency.
The remainder of the current quarter will see a focus on admission and disclosures, admission and rejection processes, disclosures, due diligence, market abuse systems and controls, information sharing, and disclosure of inside information.
In Q1 and Q2 2025, the regulator will publish a discussion paper on rules around trading platforms, intermediate rules, lending rules, access and disclosures, staking such as ownership and disclosures, and prudential considerations for cryptoasset exposure.
This timeframe will also see consultation papers on stablecoins; covering backing assets and redemption; custody, covering recordkeeping, reconciliations, segregation of assets and use of third parties; and finally, prudential, covering introduction of a new sourcebook, capital, liquidity and risk management.
A number of consultations will take place in Q3. The first of these will cover conduct and firm standards for all regulated activities, including operational resilience and financial crime, followed by others on consumer duty, complaints conduct, governance, admissions and disclosures and market abuse.
The concluding phase of the roadmap carries on from Q4 2025 into Q1 2026. The final two consultations cover trading platforms, specifically intimidation, lending and staking; and resolution, namely any remaining materials for the prudential sourcebook, groups and reporting. All policy statements resulting from these consultations will be published in 2026.
With a long series of consultations and discussion papers on the horizon, the FCA seems to have taken some reassurance from the recent survey that consumers are aware of its duties and responsibilities.
Around a third of respondents believe they can raise a complaint with the FCA if seeking recourse or financial protection, in the absence of concrete legislation of British crypto – something the government is trying to change with its Property Bill and the FCA with its 2025 roadmap.
“We’re committed to working closely with the Government, international partners, industry and consumers to help us get the future rules right,” Long concluded.
