FCA don launch final consultation on UK crypto rules: custody, consumer protections, credit limits and reporting

UK Financial Conduct Authority (FCA) open final consultation on 12 February 2025, dem dey ask industry and public make dem give feedback by 12 March 2025 on ten proposed rules wey go form full UK crypto regulatory framework. Di main proposals touch business conduct and consumer protection—transparent pricing, clearer risk disclosures, marketing rules, and possible ban or limits on to buy crypto with credit—and stronger custody and client-asset safeguards like segregation, cold storage, multisignature, independent audits and insurance. Di package still dey mandate better reporting and transparency through standard templates for transaction volumes, client demographics and risk exposures, plus new regulatory reporting duties for crypto asset service providers (CASPs). FCA plan to review responses in April, publish final rules in Q2 2025, seek parliamentary approval and move to implement likely late 2025 or early 2026; applications for CASP licences dey expected after. Industry response dey cautiously positive: exchanges happy say things clear but dem warn say compliance costs go higher; consumer groups support credit restrictions. Expected market effects include consolidation among smaller firms, higher compliance costs, improved consumer confidence, and more institutional participation. Traders suppose watch deadlines and timelines (consultation close: 12 March 2025), possible limits on buying crypto with credit, and stricter custody standards wey fit raise operational costs for smaller platforms and reduce liquidity or listings short-term while improving long-term market integrity and institutional inflows.