DP24/4: Regulating cryptoassets – Admissions & Disclosures and Market Abuse Regime for Cryptoassets

Read DP24/4 (PDF)[1]

Why we’re publishing this Discussion Paper

We are using this Discussion Paper (DP) to help inform the development of our rules for cryptoasset admissions and disclosures (A&D) and cryptoasset market abuse (MARC).  

Our proposals aim to reduce risks without stifling growth and innovation. We aim to reduce consumer harms and promote confidence and trust in the UK cryptoasset market by:

• improving regulatory clarity so that there are clear and consistent ‘rules of the game’ for firms and consumers
• making sure consumers have the information they need before buying or selling cryptoassets  
• requiring controls and processes to bring about fair and orderly trading conditions  
• further reducing risks of money laundering and losses to fraud

By shaping a marketplace which is sustainable, robust and trusted, we will promote long-term investment and innovation in the UK. We have engaged with industry to inform the development of our rules for the A&D and MARC regimes. We held crypto policy roundtables[2] in April and May 2024, and engaged with market participants to enable them to share their thoughts on opportunities and challenges. 

We welcome feedback from domestic and international stakeholders to help us shape the final policy proposals.

Who this is for

This DP will be relevant to a wide range of cryptoasset market participants and other interested stakeholders including:  

• firms or individuals, with a focus (but not exclusively) on those participating in the wholesale cryptoasset market  
• cryptoasset firms (including trading platforms operators, principal trading firms, intermediaries and others)  
• UK cryptoasset investors
• traditional finance participants  
• industry groups/trade bodies  
• professional advisers  
• law firms and accountancy firms advising on cryptoassets  
• consumer groups and individual consumers  
• policy makers and other regulatory bodies  
• industry experts and commentators  
• academics and think tanks  
• other firms or professional bodies involved in cryptoassets  

Next steps  

Online response form[3]

We are asking for comments on this DP by 14 March 2025.

You can send them to us using our online response form[3] or by emailing: [email protected]. 

If emailing, please indicate whether you wish your response to be confidential and, separately, if you are content to be named as a respondent.  

We will consider this feedback and conduct further industry engagement to determine our next steps. We will consult via a Consultation Paper (CP) on any of the proposals outlined in this DP if we propose to adopt them as part of our final rules.  

Background  

In 2023, the government announced plans[4] to legislate for a future financial services regime for cryptoassets. In November 2024, the new government confirmed[5] it will proceed with legislation to bring certain cryptoassets activities into the FCA’s regulatory perimeter.  

Under the government’s plans, our regulatory remit for cryptoassets will expand from the current Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017[6] (MLRs) and Financial Promotions regime[7] to a more comprehensive conduct regime. This will cover cryptoasset trading, regulation of stablecoins, intermediation, custody and other core activities.  

Separate papers will be published (or have already been published, such as the DP23/4 Regulating cryptoassets Phase 1: Stablecoins[8]) for other parts of the regime. Our Cryptoasset Publication Roadmap[9] gives further clarity on the content and sequencing of future DPs and CPs.