Representations of cryptocurrencies are seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration
LONDON, Dec 16 (Reuters) - British regulator the Financial Conduct Authority (FCA) launched a wide-ranging consultation on a range of proposed rules for the crypto industry on Tuesday, a day after the government said the industry would be regulated from October 2027.
The FCA set out its proposals alongside research that shows that the proportion of UK adults holding crypto has fallen by a third, from 12% to 8% in the past year.
Watchdogs globally are playing catch-up on rules for the crypto industry, with Britain seeking to align its regulation with the U.S. rather than the European Union.
The FCA said on Tuesday that its rules would cover listings for crypto assets, measures to stop insider trading and manipulation, standards for crypto trading platforms and rules for brokers.
It is also consulting on prudential requirements, regulations to make the risks clearer on crypto staking, better protections for crypto lenders and borrowers and potential financial safeguards for crypto firms to manage risks.
"Regulation is coming – and we want to get it right. We’ve listened to feedback, and now we’re setting out our proposals for the UK’s crypto regime," said David Geale, executive director for payments and digital finance at the FCA.
"Our goal is to have a regime that protects consumers, supports innovation and promotes trust. We welcome feedback to help us finalise these rules."
The FCA is seeking feedback on its proposals before a February 12, 2026, deadline. The regulator has promised to finalise the regime by the end of next year.
(Reporting by Iain Withers and Phoebe SeersEditing by Tomasz Janowski)
