FCA Publishes Cryptoasset Road Map and Plans for a Cryptoasset Regime

Following an announcement from Economic Secretary to the Treasury, Tulip Siddiq, outlining the UK government’s plan for cryptoasset legislation, the FCA published it’s roadmap for the development of a cryptoasset regime up to 2026 (the “Roadmap”).

The Roadmap sets out the timeline for the planned cryptoasset regime. In addition, the FCA have also published its research on the cryptoasset holdings of UK consumers along with feedback from roundtables with a number of institutions.

Key Developments in the Roadmap

The Roadmap sets out the following key plans:

• Q4 2024:  feedback in the form of a discussion paper on the regimes relating to admissions and disclosures, and market abuse.
• Q1/Q2 2025: a discussion paper on trading platforms, lending, staking, and other intermediary activities. The FCA aims to publish consultations on stablecoins, custody, and prudential requirements.
• Q3 2025: a consultation on conduct and firm standards for all Regulated Activities Order activities, with further consultations building on admissions and disclosures, and market abuse.
• Q4 2025 / Q1 2026: a consultation on rules in respect of trading platforms, intermediation, lending and staking as well as any remaining parts of the Prudential Sourcebook.
• 2026: All final policy statements are due to be published over the course of 2026 with the gateway application opening, followed by the regime going live.

Considerations for Consumers and Businesses

The FCA’s research identified an increase in ownership of cryptoassets by UK consumers with 12% of adults surveyed owning cryptoassets up from 4.4% in 2021 and 10% in 2022. Meanwhile, separate research showed that 20% of cryptoasset users incorrectly believed they would be entitled to compensation if their holdings were lost, with just over a third (32%) believed they would have the ability to raise a complaint with the FCA about issues with their cryptoassets.

Despite the potential risks in holding cryptocurrency on an exchange, 72% of cryptoasset owners hold their cryptocurrency in the exchange used to purchase it. The implementation of regulation may well improve the awareness of users and protection of consumers.

Following on from the Property (Digital Assets etc) Bill, which has confirmed the legal position of cryptocurrency as property, the FCA Roadmap, greater regulation and clarity on the legal status of cryptoassets has the potential to lead to wider adoption institutionally. Both consumers and businesses holding and dealing in cryptoassets need to be aware of the relevant law applicable to the entities which they are dealing with and rights available to them.

How Can Ellis Jones Help?

If you need assistance with cryptoasset related queries, please visit our crypto specialist webpage. You can contact us on 01202 525333 or alternatively, you can also email our specialist Cryptocurrency team by emailing cryptocurrency@ellisjones.co.uk.