UK FCA Proposes Tougher Crypto Rules in CP26/4
The Financial Conduct Authority’s consultation paper CP26/4 sets out a package of tighter rules for crypto firms operating in or serving UK customers. The proposals raise expectations under the Consumer Duty, impose stronger safeguards for client assets, tighten complaints-handling obligations, and introduce higher regulatory thresholds for overseas firms that provide services to UK retail users. The FCA says the changes are intended to close gaps that have left consumers exposed.
If finalised, the measures are likely to increase compliance and operational costs for exchanges, custodians and P2P platforms, particularly non‑UK firms that rely on cross‑border servicing. Firms can expect closer supervision, stricter custody and oversight requirements, and faster remediation timelines for consumer complaints. Responses to CP26/4 will influence the final rules and any transition periods, shaping market access and consumer protections going forward.