The UK financial watchdog is exploring further potential regulation of cryptocurrency markets, including imposing restrictions on the use of credit to purchase digital currencies.
Proposals were published by the Financial Conduct Authority on Friday seeking feedback on the regulation of cryptoasset trading platforms and other activities, including staking, lending, borrowing, and decentralised finance.
The discussion paper move comes ahead of legislation that would bring specific cryptoasset activities under the FCA’s remit, with a consultation on the final regulatory regime to follow later this year.
“Crypto is a growing industry. Currently largely unregulated," said David Geale, executive director of payments and digital finance at the regulator.
"We want to create a crypto regime that gives firms the clarity they need to safely innovate, while delivering appropriate levels of market integrity and consumer protection.
"Our aim is to drive sustainable, long-term growth of crypto in the UK. We’re asking whether we have got the balance right.”
The FCA said the paper is part of its broader Crypto Roadmap, which outlines plans to consult on regulation covering market abuse, stablecoins, custody arrangements, and prudential concerns.
It also follows the launch of the FCA’s 2025–2030 strategy, which focuses on smarter regulation, supporting economic growth, improving consumer outcomes, and tackling financial crime.