CP25/25: Application of FCA Handbook for Regulated Cryptoasset Activities

Read CP25/25 (PDF)[1]

Why we are consulting

We want to develop a competitive and sustainable cryptoasset sector – one that enables innovation and is underpinned by market integrity and consumer protection. CP25/25 looks at how our existing FCA Handbook rules will apply to future regulated cryptoasset firms. 

We are consulting on how our existing FCA Handbook rules will apply to firms, including High Level Standards such as the Senior Management Arrangements, Systems and Controls (SYSC) Sourcebook (including governance, Senior Managers and Certification Regime, financial crime and operational resilience), and Business Standards (specifically the Environmental, Social and Governance Sourcebook). 

We are also seeking views on our approach to the Consumer Duty, Business Standards such as the Conduct of Business Sourcebook, Product Intervention and Product Governance Sourcebook, Redress (Dispute Resolution: Complaints) and application of the Financial Ombudsman Service under the new cryptoasset regime.  

Currently, our cryptoasset rules cover financial promotions and preventing financial crime. As part of our Crypto Roadmap[2], our regulatory remit will expand to a more comprehensive cryptoassets regime to be set out in HM Treasury’s forthcoming legislation.

Under our proposals, consumers will be better protected from poor operational business practices, helping to build trust in the sector. Firms will need to be operationally resilient and requirements on firms to have systems and controls to fight crime will be strengthened.  

Firms and individuals conducting these new regulated activities will need to apply for authorisation before carrying out any of them by way of business in the UK.

Who is this for 

Our proposals will affect consumers and firms who conduct, or interact with:  

• Regulated cryptoasset activities as set out in the Treasury’s draft Statutory Instrument[3]. 

Who needs to read this document:

• Firms planning to undertake any of the regulated cryptoasset activities as set out in the Treasury’s draft Statutory Instrument[3].
• Industry groups, law firms and trade bodies representing firms in the cryptoasset sector.
• Auditors and professional advisers providing services in the cryptoasset sector.
• Groups representing consumer interests.

It may also interest:  

• Policymakers and other regulatory bodies.
• Academics and think tanks.
• Industry experts and commentators.

Next steps

We want your comments on the discussion proposals (chapters 6-7) by 15 October 2025 and feedback on the consultation proposals (chapters 1-5) by 12 November 2025.

Online response form (consultation proposals – chapters 1-5)[4]

Online response form (discussion proposals – chapters 6-7)[5]

Or in writing to: Crypto Policy Team, Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN

Email: [email protected]

To help firms and stakeholders understand the policy rationale and considerations of our proposals and to gather feedback, we will arrange a series of in-person and virtual engagements. 

Background

The Government plans to create a UK financial services regulatory regime for cryptoassets. 

On 29 April 2025, the Treasury published a draft of forthcoming statutory provisions[4] to create new regulated activities for cryptoassets, and a policy note detailing the intended policy outcomes of these provisions.