The UK Crypto Landscape: law and regulation

In December 2025, the Financial Conduct Authority (FCA) published a series of consultation papers on cryptoassets, CP25/40 – 42.

These consultation papers represent the FCA’s most comprehensive proposals for regulating cryptoasset activities in the United Kingdom to date. Each focuses on a separate yet related matters.

• CP25/40 – proposed rules for cryptoasset trading platforms, intermediaries, lending/borrowing, staking and DeFi;
• CP25/41 – proposed admissions and disclosures framework and market abuse regime (MARC) for cryptoasset markets; and
• CP25/42 – extended prudential requirements covering all cryptoasset activities including capital requirements, K-factors and risk assessment.

This document breaks down the FCA’s proposals in an accessible format for industry participants. The summaries provided below follow chronologically, illustrating the development of the FCA’s guidance overtime since December 2025.