Britain’s Financial Conduct Authority (FCA) has proposed exempting crypto companies from some of the toughest standards that apply to financial services firms, including rules requiring them to act with integrity, exercise skill and care, and prioritize customer interests.
The regulator said the goal is to help fast-growing crypto firms compete internationally while still setting minimum standards for the sector, as the UK works with the U.S. on a coordinated approach to digital assets under President Donald Trump’s pro-crypto stance.
While warning that crypto remains high-risk and volatile, the FCA stressed that consumers should be shielded from poor practices, and it is also pushing for stronger protections against operational risks, citing February’s $1.5 billion hack on Dubai-based exchange Bybit.
The consultation will also consider whether crypto firms should face the same consumer duty as traditional financial companies, which includes giving customers access to the Financial Ombudsman Service for compensation.
With crypto ownership in the UK rising to about 12% of adults, up from 4% in 2021, feedback on the proposals is open until November 12.
