The U.K.’s Financial Conduct Authority (FCA) is embarking on the final phase of its consultations on new rules for the crypto sector — including how its new “consumer duty” will apply to crypto firms.
In a new consultation paper, the FCA is seeking feedback on conduct standards, complaint handling, redress and dispute resolution, along with asset safeguarding requirements for crypto firms.
And in a separate paper, it’s also consulting on proposed guidance that focuses on how the U.K. consumer duty — which requires firms to act to deliver “good outcomes” for all clients, including vulnerable investors — will be enacted in the crypto space.
That duty “applies to crypto asset activities in the same manner as it does to existing regulated … activities,” the paper said — adding that it also applies to communications and promotions by crypto firms that are targeted at retail investors.
“By applying the duty, firms in the crypto asset sector are expected to integrate customer interests at the core of their business models and support good consumer outcomes,” the proposed guidance noted.
The consultation paper also reiterated the FCA’s intention to take a similar approach to crypto assets as it does to traditional finance, “with clear information for consumers, proportionate requirements for firms and flexibility to support innovation.”
The latest consultations are open until March 12.
Its new regime for regulating the crypto sector is expected to take effect in September.