What did UK FCA propose?

TLDR

The UK Financial Conduct Authority (FCA) proposed a comprehensive crypto market rulebook via a new consultation covering trading venues, intermediaries, staking, lending, and parts of DeFi, ahead of an October 2027 start (consultation overview).

1. Trading venues and intermediaries: admissions, disclosures, systems and controls, and a crypto?specific market abuse regime (policy detail).
2. Bespoke requirements for staking, with consumer?protection focused rules for lending and borrowing (scope and emphasis).
3. DeFi oversight where identifiable firms provide services; feedback due by 12 Feb 2026, regime targeted for Oct 2027 (timeline and CP25/40 note).

Deep Dive

1. Market Structure

The proposals bring crypto trading platforms and intermediaries into a unified framework on admissions, disclosures, systems and controls, plus a tailored market abuse regime.

1. The FCA is adapting same risks, same outcomes from traditional finance, while tailoring market?facing rules for crypto assets (analysis).
2. The approach recognizes global liquidity access and aims to improve execution quality for consumers (industry perspective).
3. The rulebooks cumulative conduct and operational standards will shape the UKs attractiveness for global firms (policy detail).

2. Staking and Lending

Staking would be governed by bespoke requirements, and lending or borrowing would carry consumer?protection focused safeguards.

1. The UK distinguishes staking from traditional financial services, aligning requirements to cryptos mechanics (scope and emphasis).
2. Earlier phases addressed stablecoin issuance and custody; the current focus is market plumbing and conduct standards (policy sequencing).
3. The regime aims for clearer risk disclosures and standardized practices for yield?bearing products (policy detail).

3. DeFi and Timeline

Where identifiable firms provide DeFi services or interfaces, the FCA proposes proportionate oversight, with a staged rollout through 20262027.

1. The consultation invites feedback on DeFi oversight and crypto?specific market abuse provisions (CP25/40 note).
2. Feedback is due by 12 Feb 2026; the final framework is targeted by end?2026, and the regime begins around October 2027 (timeline).
3. Unresolved areas (for example some stablecoin details and non?custodial DeFi) will be refined during the consultation process (policy detail).

Conclusion

The FCAs proposals move the UK from fragmented oversight to a unified crypto market regime that balances innovation with market integrity and consumer protection. The most important practical step is engaging with the consultation, then preparing authorization, surveillance, and disclosure capabilities for a 20262027 rollout (overview above).