The authority is using this Discussion Paper to "help inform the development of its rules for cryptoasset admissions and disclosures and cryptoasset market abuse."

The proposals aim to "reduce risks without stifling growth and innovation" and to "reduce consumer harms and promote confidence and trust in the UK cryptoasset market". The FCA will do the latter 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.

Deadline for comments is 14 March 2025. 

The data request will inform work across the PRA and the Bank of England on cryptoassets by helping them to:

• calibrate the prudential treatment of cryptoasset exposures;
• analyse the relative costs and benefits of different policy options;  and 
• provide an updated view of firms' current and intended cryptoasset-related business activities as a base from which to monitor the financial stability implications of these assets.

Firms have been asked to complete the information request at the highest-level of UK consolidation to the extent that it is relevant to their business, exposures or activities.

The deadline to submit the completed questionnaire is 24 March 2025.

In CP24/9: Financial Crime Guide updates the FCA consulted on proposed changes to the Guide relating to:

• sanctions
• proliferation financing
• transaction monitoring

It also proposed adding references to cryptoassets and the Consumer Duty, along with consequential changes such as data security and updating case studies.

Policy statement PS24/17 is relevant to:  

• all FCA financial crime supervised firms
• firms that the FCA supervises under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs), including cryptoasset businesses

The Guide will also be of interest to:  

• individuals and organisations working with firms subject to FCA financial crime and MLRs supervision
• financial services sector trade associations
• any other parties interested in FCA financial crime supervision; this could include non-governmental organisations working on financial crime prevention or academics.

According to the latest research, 12% of UK adults now own cryptoassets, up from 10% in previous findings. Awareness of cryptoassets also rose from 91% to 93%, while the average value of cryptoassets held by people increased from £1,595 to £1,842. 

The FCA also published:

• An indicative roadmap of key dates for the development and introduction of the UK’s crypto regime. This roadmap outlines planned FCA policy publications for cryptoassets where it is seeking feedback and the content they are expected to cover. 
• A blog by Matthew Long, director of payments and digital assets: 'Developing our approach to crypto regulation'.

See also our article FCA publishes plans for developing cryptoasset rules in the UK.

The Legal aspects of retail CBDCs paper examines some key legal questions that may need to be addressed by any jurisdiction considering issuing a retail CBDC but does not attempt to provide definitive answers to those questions. It focuses on four areas: the legal classification of retail CBDC; the obligations and liabilities of participants in the retail CBDC ecosystem; privacy and financial crime; and cross-border issues. 

The CBDCs: System design paper provides some perspectives on overall system design and then focuses on four key issues for designing a well-functioning retail CBDC system: privacy, cybersecurity (including quantum computing), offline functionality; and point of sale considerations.

The Secretary outlined initiatives the UK government is taking forward in the digital asset ecosystem, for example the Digital Securities Sandbox and the government’s wider cryptoasset strategy.