Britain's Financial Conduct Authority (FCA) has launched an additional consultation to reorganise the scope of regulation for key digital asset activities ahead of the launch of its crypto regulatory framework in October 2027. The consultation focuses on clarifying which activities fall under regulation, including stablecoin issuance, operation of trading platforms, custody and staking.

According to blockchain media outlet The Block Crypto on April 16, the FCA will accept feedback from individuals and companies, industry bodies, policymakers and academia. The consultation closes on June 3, and crypto firms can apply for FCA authorisation from Sept. 30.

The process extends Britain's phased buildout of a crypto regulatory framework. Britain introduced the Financial Services and Markets Act (Cryptoassets) Regulations 2026 in February and has been working to bring new crypto-related activities under the FCA's supervision. The FCA has also continued separate consultations on stablecoin issuance, crypto custody, prudential rules, admission and disclosure, and market abuse issues.

The FCA plans to issue a policy statement in the second half of this year. It said consultations on rules for the future crypto regime have effectively entered the final stage. It described the current guidance consultation as supplemental work to clarify which activities fall within the regime, and said the final policy statement is targeted for release in autumn.

It also revisited the issue of regulatory gaps. The FCA stressed that until the new regime takes effect, crypto is largely unregulated except for financial promotions and financial crime purposes. That is interpreted to mean the industry needs to check in advance for gaps between the current system and the future regime.

Britain's crypto regulation has expanded in stages. It began anti-money laundering supervision in 2020, banned sales of crypto derivatives to retail investors in 2021, and applied financial promotions rules to crypto in 2023. This consultation is part of that process and serves to finalise the outer boundaries of a comprehensive regulatory framework.

Industry reaction was mixed. Thomas Catty (토머스 캐티), a partner in charge of white-collar crime at Gerson Solicitors, pointed out that Britain's introduction of crypto regulation is significantly behind Europe. He said Europe is already further ahead in adopting a fully implemented regime and assessed Britain as taking another slow step on what appears to be a long and unending journey. He added that the industry needs to respond actively to the process, and that Britain will ultimately not lag far behind Europe as a place for crypto firms to do business.

By contrast, Nick Jones (닉 존스), founder of decentralised finance (DeFi) mobile payments platform Zumo, said he viewed the process positively. He said there may be fatigue because it is another consultation paper, but called it a very positive development for the industry. He said firms that respond proactively can prepare earlier for the new regime, and assessed that the FCA's crypto roadmap means Britain is following a more structured, phased and predictable process than other regions.

The scope of future discussions is expected to broaden. The FCA signalled additional consultations within this year on DeFi, operational resilience for firms using distributed ledger technology, and revisions to financial crime guidance that applies to crypto firms. As a result, Britain's crypto market is moving beyond simple registration toward full incorporation into the formal system, including authorisation, business obligations and infrastructure requirements.