Key themes and emerging issues that organisations will need to navigate under the new cryptoasset regulatory regime.
By Brett Carr, Stuart Davis, Gabriel Lakeman, Maria Georgiou, Jasmine Hopkinson, Cameron Jones, Sam Maxson, Imaan Nazir, Ivan Pizeta, Emma Trankeenan,* and Ema Uncovska
Key Points:
- The 12 February 2026 deadline for firms to respond to the FCA’s consultation papers (CPs) on the future UK regulatory regime for cryptoassets is fast approaching.
- While much of the regime corresponds to existing traditional finance (TradFi) requirements, the FCA is proposing additional rules which will materially impact firms seeking UK authorisation.
The 12 February 2026 deadline for firms to respond to the FCA’s consultation papers (CPs) on the future UK regulatory regime for cryptoassets is fast approaching. The FCA issued the CPs on the future UK regulatory regime for cryptoassets on 16 December 2025. They include: CP25/40 (detailed rules for regulated cryptoasset activities); CP25/41 (admissions, disclosures, and market abuse); and CP25/42 (the prudential regime for cryptoasset firms). A day earlier, on 15 December 2025, HM Treasury (HMT) published the final draft statutory instrument (SI) setting out the legislative framework underpinning the future UK regime (see this Latham report).
Although many of the proposed FCA rules correspond to existing traditional finance (TradFi) requirements, there are significant differences — particularly where the FCA has tailored the regime based on policy considerations and the specific nature of cryptoasset activity. As a result, the volume of rules being consulted on, combined with the limited time for firms to prepare for authorisation (see this Latham blog post), places significant pressure on firms seeking to engage with the proposals.
For more details, see our article.
*Admitted to practice in New South Wales, Australia only