CFA Institute and CFA UK have submitted a joint response to the Financial Conduct Authority’s Consultation Paper CP25/25 on the Application of the FCA Handbook for Regulated Cryptoasset Activities.
Our response welcomes the FCA’s timely and pragmatic approach to integrating cryptoassets within the UK’s existing regulatory framework – a crucial step toward establishing greater clarity, consistency, and accountability in this rapidly evolving market. We particularly commend the FCA’s decisive stance in extending key conduct principles to crypto-related activities, reducing uncertainty, and ensuring that consumers benefit from standards comparable to those applied in traditional finance.
As with our earlier responses, we advocate for a measured and proportionate regulatory approach that strengthens investor protection while enabling innovation. Our key recommendations include extending the Consumer Duty and Financial Ombudsman Service to cryptoasset activities, enhancing transparency through bespoke disclosure requirements, and maintaining a balanced application of Conduct of Business and Product Governance provisions.
Taken together, these proposals support a holistic, outcomes-based framework that safeguards upholds market integrity, builds confidence in the emerging sector, and promotes the responsible growth of the UK’s digital finance ecosystem.