FCA Crypto Regulation Consultation: What UK Professionals Need to Know

A practical, adviser-focused overview of the FCA's proposed UK crypto regime, what could change, and how to prepare clients without taking custody.

Introduction

[Back to Insights](/insights) Crypto is moving from "best effort" consumer protection towards a more structured UK regulatory perimeter. For professionals, the opportunity is clear: clients are asking about crypto exposure, but the risks sit in operational reality — access, governance, evidence, and recovery — not just price. This article summarises the FCA consultation direction at a practical level, and what it means for day-to-day client work. Non-custodial coordination. Not financial advice.

What is the FCA actually consulting on?

The FCA is working through what a UK regulatory regime should look like for cryptoasset activities. In practice, the themes professionals should track include: - How trading venues, intermediaries and custody-style services are expected to operate - Requirements around disclosure, admissions, and information presented to consumers - Market integrity concepts (for example market abuse-type expectations) - How firms evidence controls, governance, and operational resilience

Why this matters to professionals (even if you are not advising on crypto)

Many clients treat crypto like a normal asset class. It is not. The biggest failures tend to be operational: - The client cannot access it when needed (lost device, forgotten passwords, changed phone number) - The family cannot recover it when it matters (death, incapacity, urgent medical scenario) - The client gets targeted by scams that exploit uncertainty and urgency Regulation does not automatically fix those. Good client outcomes still require a documented, rehearsed recovery plan.

The professional checklist: what to put in place now

1) Inventory and evidence Create a simple, estate-friendly inventory: platforms used, wallet types, device list, and who holds what role (client, spouse, executor, adviser). Keep it separate from the keys. 2) Reduce single points of failure Most losses begin with email compromise or SIM-swap. Ensure the client's email and mobile number recovery routes are hardened before anything else. See also: /insights/crypto-security-uk-checklist 3) Plan for the first 48 hours Families and executors need an ordered plan that does not rely on memory. A first-48-hours workflow reduces panic decisions and prevents social engineering. 4) Protect probate from recovery scams Scammers target families after a death or during account lockouts. Give clients a simple rule: Bitzo never asks for seed phrases, private keys or wallet passwords. See also: /insights/crypto-recovery-scams-uk

Where Bitzo fits

Bitzo is the non-custodial coordination layer. We do not hold keys and we do not take custody. We help create a documented, verified recovery path so that security and inheritance readiness work in the real world.

Next steps

If you support clients who hold crypto, focus on security and continuity before anything else. Explore our professional programme or book a confidential call. - Adviser programme: /advisers - Book a call: /book - Security overview: /security [Back to Insights](/insights)