Michaela
The UK’s Financial Conduct Authority (FCA) has unveiled fresh proposals detailing how traditional financial regulations should extend to cryptocurrencies, inviting public feedback as the UK financial regulator advances efforts to establish a comprehensive regulatory framework for the industry.
Key points:
- The UK Financial Conduct Authority (FCA) has proposed extending traditional financial standards to crypto firms, including resilience and anti-crime measures.
- The regulator is consulting on how Consumer Duty rules and complaint procedures, such as escalation to the Financial Ombudsman Service, should apply to crypto.
- The proposals aim to build trust, improve investor protections, and create clearer standards that could encourage broader market adoption.
In a recent press release, the FCA said it is seeking input on new proposals that set out minimum standards for cryptocurrency firms. The regulator noted that the measures closely align with rules already applied to traditional financial institutions, including requirements on operational resilience and systems designed to combat financial crime.
The UK financial regulator said the proposed rules are designed to strike a balance, enabling UK firms to remain competitive on the global stage while addressing the distinct characteristics of the crypto market. As part of this, the regulator has launched a consultation on how its Consumer Duty framework, requiring firms to prioritize positive outcomes for customers, should extend to cryptoassets.
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Furthermore, the FCA is inviting feedback on how consumer complaints should be handled, including whether cases ought to be escalated to the Financial Ombudsman Service. “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,” David Geale, executive director of payments and digital finance, stated.
“We are working now on what those standards should look like, ahead of legislation to bring it within our regulation,” he added.
Related: Senators Introduce SAFE Crypto Act to Combat $9.3B Crypto Scam Surge
UK Financial Regulator Proposals Could Impact SHIB
For SHIB holders, the FCA’s proposed rules could mark a turning point for both transparency and investor protection. By applying standards similar to those faced by traditional financial firms, the regulator aims to raise confidence in crypto markets while balancing innovation with safeguards.
If implemented, measures such as the Consumer Duty could push firms to prioritize fair treatment and clear disclosures, offering SHIB traders stronger protections. This regulatory clarity may also appeal to institutions that have been hesitant to engage with meme tokens, potentially supporting wider adoption and solidifying SHIB’s position within the UK’s evolving digital asset landscape.
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
