On 2 May 2025, the Financial Conduct Authority (‘FCA’) published a consultation paper aimed at outlining the proposed approach to regulating crypto-asset activities in the United Kingdom. In particular, the document discusses issues related to the functioning of crypto-asset trading platforms, intermediation, lending and borrowing of crypto-assets, as well as staking. In addition, issues related to decentralised finance (DeFi) and to the use of credits and loans for the purchase of crypto-assets are also discussed. This marked the start of a consultation period lasting until 13 June 2025, during which market participants and other interested parties can submit their comments and objections to the content of the above-mentioned document.
The main objectives of the proposed regulations are as follows:
- achieving an adequate level of protection for consumers of crypto-asset services;
- protecting the UK’s financial system and enhancing its integrity;
- promoting effective competition in the crypto-asset market;
- facilitating a positive impact on the development of the UK’s economy and supporting its international competitiveness;
- enabling consumers to access financial products that meet their needs and offer fair terms.
The content of the above-mentioned document can be consulted at the following link:
https://www.fca.org.uk/publications/discussion-papers/dp25-1-regulating-cryptoasset-activities