{"id":424442,"date":"2026-02-14T00:00:08","date_gmt":"2026-02-14T00:00:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/424442\/"},"modified":"2026-02-14T00:00:08","modified_gmt":"2026-02-14T00:00:08","slug":"crypto-advocates-urge-uks-fca-to-narrow-regulatory-scope","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/424442\/","title":{"rendered":"Crypto Advocates Urge UK\u2019s FCA to Narrow Regulatory Scope"},"content":{"rendered":"

The DeFi Education Fund<\/a> (DEF), a Washington, D.C.-based advocacy group, is urging the United Kingdom\u2019s Financial Conduct Authority<\/a> (FCA) to limit its upcoming cryptocurrency regulations to entities that have unilateral control over user funds or transactions, CoinDesk reported<\/a> Friday (Feb. 13).<\/p>\n

The DEF made these comments in a response to an FCA consultation paper, and shared that response exclusively with CoinDesk, according to the report.<\/p>\n

When determining the scope of regulations, \u201cControl should be the determinative factor,\u201d the DEF said, per the report.<\/p>\n

The FCA announced in December that it was seeking feedback on its proposals for U.K. crypto rules<\/a> and that it would accept responses until Feb. 12.<\/p>\n

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The regulator\u2019s proposed crypto rules encompass a range of areas, including admissions and disclosures, market abuse, crypto trading platforms, intermediaries, staking, lending and borrowing, decentralized finance and prudential requirements.<\/p>\n

\u201cRegulation is coming, and we want to get it right,\u201d David Geale<\/a>, executive director for payments and digital finance at the FCA, said when announcing the consultation on the rules. \u201cWe\u2019ve listened to feedback, and now we\u2019re setting out our proposals for the U.K.\u2019s crypto regime.\u201d<\/p>\n

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\u201cOur goal is to have a regime that protects consumers, supports innovation and promotes trust,\u201d Geale added.<\/p>\n

In January, the FCA posted information for firms that want to offer crypto-related services in the U.K. under the crypto asset regulatory regime<\/a> that is expected to come into effect in 2027.<\/p>\n

The information published to help firms prepare for the new regulatory regime covers crypto asset regulated activities<\/a>; the FCA\u2019s standards<\/a> for crypto asset firms and individuals; the regulator\u2019s approach to authorization, supervision and enforcement<\/a> for firms that undertake these activities; a gateway<\/a> for firms that want to undertake crypto asset activities; and a proposed transitional provision<\/a> that will allow existing crypto asset firms that fail to secure authorization to wind down their U.K. business in an orderly way.<\/p>\n

The FCA said in its January announcement that over the following months, it will publish policy consultations setting out its proposed rules and guidance, consider the responses to those consultations, and then set out its final rules and guidance in policy statements.<\/p>\n

For all PYMNTS digital transformation coverage, subscribe to the daily Digital Transformation Newsletter<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"The DeFi Education Fund (DEF), a Washington, D.C.-based advocacy group, is urging the United Kingdom\u2019s Financial Conduct Authority…\n","protected":false},"author":2,"featured_media":424443,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[779,11172,15313,155931,17823,59,57,58,50,5292,11966,56,54,55,6242],"class_list":{"0":"post-424442","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-united-kingdom","8":"tag-bitcoin","9":"tag-blockchain","10":"tag-cryptocurrency","11":"tag-defi-education-fund","12":"tag-financial-conduct-authority","13":"tag-gb","14":"tag-great-britain","15":"tag-greatbritain","16":"tag-news","17":"tag-pymnts-news","18":"tag-regulations","19":"tag-uk","20":"tag-united-kingdom","21":"tag-unitedkingdom","22":"tag-whats-hot"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/424442","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=424442"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/424442\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/424443"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=424442"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=424442"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=424442"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}