The Financial Conduct Authority (FCA) has proposed exempting UK-based crypto asset platforms from several core regulatory principles, including those relating to integrity, customer focus, and the requirement to act with skill, care, and diligence. This consultation, published on 17 September 2025, is part of a broader effort to enhance the UK’s competitiveness in the digital assets sector and potentially accelerate withdrawal and payment services for crypto users. The public feedback window remains open until 12 November 2025. (Source: Reuters)
Key Proposals From the FCA:
- Waiving four existing principles for crypto trading platforms:
- Business integrity
- Customer interest
- Skill, care, and diligence
- Suitability of advice and decisions
- Imposing stricter requirements on operational risk management following high-profile incidents such as the $1.5 billion Bybit hack in February 2025
- Considering the extension of “consumer duty” obligations and possible customer access to the Financial Ombudsman Service
- Maintaining baseline consumer protections despite reduced regulatory burden
David Geale, the FCA’s executive director of payments and digital finance, commented, “We want to develop a sustainable and competitive crypto sector – balancing innovation, market integrity and trust. Our proposals won’t remove the risks of investing in crypto, but they will help firms meet common standards so consumers have a better idea of what to expect.”
Recent surveys indicate that approximately 12% of UK adults have held cryptocurrencies, up from 4% in 2021, underlining the sector’s growing relevance. The FCA’s approach follows earlier signals of collaboration with US regulators and a global trend towards adapting regulatory frameworks for digital asset markets.
| Area | Current Rule | Proposed Change |
|---|---|---|
| Business Integrity & Customer Focus | Mandatory | Exemption for crypto platforms |
| Operational Risk Controls | General requirements | Stricter controls post-Bybit hack |
| Consumer Duty & Ombudsman Access | Not previously extended | Potential new obligations |
The FCA intends for these proposals to lower barriers and licensing hurdles for crypto service providers, while still ensuring fundamental consumer protection. For those engaging with UK-licensed online casinos or considering crypto as a withdrawal method, understanding regulatory shifts is essential. For further information, see our guides on crypto withdrawals at UK online casinos, Bitcoin withdrawal methods, and safe casino practices.
