The UK's Financial Conduct Authority has launched a public consultation on its proposed cryptocurrency regulatory framework, focusing on areas such as intermediaries, staking, lending, borrowing, and decentralised finance. This move follows the Treasury's recent draft legislation, which aims to bring specific crypto activities under the FCA's regulatory umbrella. According to the FCA, the goal is to establish a clear and balanced regulatory regime that allows firms to innovate while maintaining market integrity and protecting consumers. The regulator has faced criticism from the crypto industry for being overly restrictive, having approved only 51 out of 368 applications since 2020.
The discussion paper explores various topics, including the potential restriction of credit card usage for crypto purchases. The FCA is accepting comments until June 13, with plans to finalize the regulatory regime later this year.