Client Briefing: UK Regulatory Framework for Crypto

On 9 January 2025, the UK government laid before Parliament, The Financial Services and Markets Act 2000 (Collective Investment Schemes) (Amendment) Order 2025 (the SI), a pivotal step in providing regulatory clarity for cryptoasset activities. The SI confirms that arrangements for qualifying cryptoasset staking will not amount to a Collective Investment Scheme (CIS) under UK financial services law.

On 16 December 2024, the Financial Conduct Authority (FCA) published its discussion paper DP24/4 on regulating cryptoassets, focusing on admissions and disclosures requirements and a market abuse regime for cryptoassets, accompanied by a press release outlining the regulator's approach. This development builds upon the FCA's November 2024 publications, which included research findings showing increased cryptoasset adoption among UK consumers and the regulator's crypto roadmap.