The Financial Conduct Authority (FCA) has opened an important new consultation—CP25/25—setting out how existing FCA Handbook rules should apply to firms conducting regulated cryptoasset activities. Published on 17 September 2025, this consultation marks a major step towards creating a comprehensive regulatory framework for cryptoassets in the UK. [fca.org.uk]
Why the FCA Is Consulting
The FCA states that its aim is to build “a competitive and sustainable cryptoasset sector – one that enables innovation and is underpinned by market integrity and consumer protection.” CP25/25 outlines proposals on how current Handbook requirements should apply to cryptoasset service providers under the Treasury’s forthcoming legislative regime.
At present, the FCA’s regulatory reach is limited largely to financial promotions and preventing financial crime. However, once HM Treasury’s legislation expands the regulatory perimeter, a much broader set of rules will govern how cryptoasset firms operate.
What CP25/25 Covers
The paper seeks feedback on how the following areas of the FCA Handbook should apply to cryptoasset firms:
- High Level Standards, including Senior Management Arrangements, Systems and Controls (SYSC), governance expectations, financial crime controls, operational resilience requirements, and the Environmental, Social and Governance (ESG) Sourcebook.
- Business Standards, including Consumer Duty considerations, the Conduct of Business Sourcebook, product governance and intervention rules, and redress mechanisms.
- Dispute Resolution, including how the Financial Ombudsman Service will apply under the new regime.
The FCA’s proposals would require any firm conducting these regulated cryptoasset activities to obtain full authorisation before carrying them out in the UK. This includes firms that are already authorised for other regulated financial services.
Strengthening Consumer Protection and Market Integrity
The FCA believes that applying existing standards will strengthen consumer protection by ensuring firms have:
- operational resilience,
- robust systems and controls, and
- strong financial crime safeguards.
These requirements are aligned with the regulator’s objective of building trust in the cryptoasset sector and reducing harms linked to poor practices or weak governance.
Who Should Respond to the Consultation
The consultation is relevant not only to cryptoasset firms, but also to a wider group of stakeholders, including:
- firms planning to undertake regulated cryptoasset activities;
- industry groups, law firms and trade bodies;
- auditors and advisers;
- consumer groups;
- policymakers, academics, and regulators.
Timelines
Key dates include:
- Discussion period ends (Chapters 6–7): 15 October 2025
- Consultation closes (Chapters 1–5): 12 November 2025
These deadlines indicate the FCA’s intention to move swiftly towards finalising the new regime once HM Treasury’s legislation is in place.
A Significant Step in the UK’s Crypto Roadmap
CP25/25 is part of the FCA’s broader Crypto Roadmap and represents a transformational shift from the current limited regulatory scope toward a full, holistic regime. By applying familiar standards to crypto firms, the FCA is seeking to ensure “same risk, same regulatory outcome”—supporting innovation while anchoring the sector in strong consumer and market protections.