DP25/1: Regulating cryptoasset activities

Read DP25/1[2]

Why we are publishing this Discussion Paper

We want to develop a safe, competitive, and sustainable cryptoasset sector. Long-term confidence in cryptoassets depends on clear regulation to promote market integrity and appropriate consumer protection.

We are seeking input into how the unique aspects of cryptoassets should be considered in our future regulatory regime. We want an open discussion on the features of the future regime, with this latest Discussion Paper (DP) seeking views on how we regulate trading platforms, intermediaries, staking, lending and borrowing, and decentralised finance. We are also seeking feedback on the use of credit to purchase cryptoassets.

These proposals have been informed by extensive engagement with the cryptoasset industry, consumers, traditional finance participants, other regulatory regimes and input from policy roundtables held in April and May 2024. These proposals also reflect feedback from the 2023 Treasury Consultation.

This DP is the latest policy publication in our crypto roadmap[3] which provides a clear timeline for consulting on future cryptoasset regulation. Other areas in the roadmap include market abuse, and admissions and disclosures, stablecoins and custody, and prudential considerations.

Who this is for

This DP will be of interest to a wide range of organisations and individuals that participate in the cryptoasset sector. This includes:

• firms or individuals that participate in, or support the services of, the proposed regulated activities in this DP
• finance services participants
• industry groups and trade bodies
• professional advisors and experts
• consumer groups and individual consumers
• policy makers and other regulatory bodies
• academics and think-tanks

Next steps 

On 30 June 2026, we published our final rules and guidance[4], which will apply to all cryptoasset firms which have been authorised to operate under FSMA on or after 25 October 2027.

Background

Under the government’s plans, our regulatory remit for cryptoassets will expand from the current Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) and Financial Promotions regime to a more comprehensive crypto regime.

On 29 April 2025, the Treasury published a draft of forthcoming statutory provisions[5] to create new regulated activities for cryptoassets, and an explainer document detailing the intended policy outcomes of these provisions.