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FCA Crypto Roadmap

Updated: Nov 29, 2024

The FCA Crypto Roadmap outlines the planned policy publications and timelines for regulating crypto assets in the UK. It sets out a phased approach with Discussion Papers (DPs), Consultation Papers (CPs), and final Policy Statements (PSs) leading to the regime's go-live in 2026.


Key areas covered:


  • Trading platforms: Location, access, matching, transparency, order handling, execution requirements.

  • Intermediation: Order handling and execution.

  • Lending: Ownership, access, disclosures.

  • Staking: Ownership, disclosures.

  • Stablecoins: Issuance, custody, backing assets, redemption, prudential considerations.

  • Market abuse: Systems and controls, information sharing, inside information disclosure.

  • Prudential: Capital, liquidity, risk management for cryptoasset exposures.

  • Conduct and firm standards: Operational resilience, financial crime, consumer duty, financial promotions, complaints handling, governance (SMCR).


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Firm implications:


  • Prepare for comprehensive regulation: Firms engaging in crypto asset activities will need to comply with detailed rules in various areas, including trading, lending, staking, and stablecoin issuance.

  • Enhance systems and controls: Robust systems and controls will be crucial for operational resilience, financial crime prevention, and compliance with Consumer Duty.

  • Focus on governance and conduct: Senior Managers Regime (SMCR) will apply, requiring strong governance and adherence to conduct standards.

  • Engage with the FCA: Participate in consultations and provide feedback on proposed rules to help shape the final regulatory framework.

  • Resource and prepare for implementation: Allocate sufficient resources to understand and implement the new rules within the given timelines.


Overall, the roadmap signals a move towards a comprehensive and robust regulatory regime for crypto assets in the UK. Firms must proactively engage with the FCA, prepare for the upcoming changes, and ensure compliance to operate in the UK market.



 
 

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The posts listed on the 'What we think' webpages are our interpretation of regulatory developments we have been reading about. They should not be considered legal, regulatory or other advice. Contact us if you want to understand the impact of public policy, regulation and governance changes for you.

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