Uk Regulator Consults On Crypto Rules For Exchanges, Lending And Defi
The UK's FCA launched three consultations on new crypto market rules covering exchanges, staking, lending and DeFi, with feedback due Feb. 12, 2026.
The United Kingdom’s Financial Conduct Authority (FCA) launched a series of consultations on proposed rules for digital asset markets, marking the next phase in the government’s effort to establish a comprehensive regulatory framework for crypto assets.
The proposals, published across three consultation papers, cover crypto trading platforms, intermediaries, staking, lending and borrowing, market abuse, disclosures and decentralized finance (DeFi). The FCA said consultation responses will be open until Feb. 12, 2026.
The regulator said the proposals aim to support innovation while ensuring that consumers understand the risks associated with crypto investment. It added that regulations should not eliminate risks entirely, but should ensure that participants operate responsibly and transparently.
“Our goal is to have a regime that protects consumers, supports innovation and promotes trust,” said David Geale, the FCA’s executive director for payments and digital finance, adding that industry feedback will help shape the final rules.
The consultations mark the next step in the UK’s push toward full “market structure” rules for crypto, moving beyond earlier requirements focused on financial promotions and Anti-Money Laundering compliance.
Under the proposals, exchanges would face clearer standards regarding admissions, disclosures and trading integrity. In addition, measures against insider trading and market manipulation would align crypto markets more closely with traditional finance.
The consultation also focuses on crypto staking services. The regulator seeks views on how firms should disclose risks when offering yield-bearing products that lock up customer assets. Crypto lending and borrowing are also included in the consultation, with proposed safeguards intended to protect borrowers and lenders.
Another element is decentralized finance (DeFi). The FCA consults on whether DeFi activities, including trading, lending and borrowing without intermediaries, should be subject to the same regulatory expectations as traditional financial services.
While consultations are ongoing, Geale reminded users that the assets are currently unregulated.
Source: CoinTelegraph
