FCA crypto regulation consultation: what UK advisers need to know

The FCA and UK Government are moving crypto further into the regulatory perimeter. Here is what professionals should watch, what clients will ask, and how to prepare without taking custody.

Introduction

Crypto is no longer a side topic for early adopters. It now appears alongside property, pensions, trusts and business assets. UK regulators are steadily tightening expectations around how crypto is marketed, documented and recovered. This article explains what is changing, what it means for UK professionals, and how to prepare in a way that improves outcomes for clients without stepping into custody, dealing, or conflicted operational roles. Non-custodial coordination. Not financial advice. Back to Insights: /insights

What is the FCA trying to achieve?

The FCA direction of travel is consistent: reduce consumer harm, raise promotional standards, and bring crypto-related activity closer to the expectations applied across financial services. One concrete example is the FCA ongoing work to improve financial promotions across markets, including targeted action in the crypto promotions regime and against illegal promotions. The FCA has published year-level reporting and expects firms to learn from good and poor practice rather than benchmarking against a market that still contains widespread failure. The FCA financial promotions data 2024 is a useful starting point for how the FCA frames the harm it is trying to prevent.

What professionals should expect clients to ask next

1. Is my exchange or wallet regulated? Clients often confuse AML registration, promotions permissions, and full authorisation. Expect more questions as regulation evolves. 2. If I die, can my family access this? Even sophisticated holders frequently have no tested recovery route. 3. Can I put this in a will? A will helps, but without a recoverable operational plan it can still fail. 4. Is this tax-efficient? Most people are missing basic record keeping, which later turns into cost, delay and disputes.

Why this matters for UK professionals

For accountants, solicitors, IFAs, wealth managers and family office teams, the practical risk is rarely price volatility. It is operational failure. Key failure modes include: 1. Credentials lost or inaccessible at the moment they are needed 2. Evidence gaps where nobody can prove what exists, where, and under what control model 3. Family conflict from unclear authority, unclear instructions, and unclear audit trails 4. Scams where families are targeted after a death or incident with recovery offers That operational layer is where professional support is often weakest because it is hard to coordinate without creating custody or liability problems.

What Bitzo changes (without custody)

Bitzo is a non-custodial coordination layer. We do not hold keys or funds. Instead, we help organise the parts that typically break. What we provide: 1. Security hygiene aligned to real-world risk, not forum theory 2. Documented recovery workflows with clear next steps 3. Verified contacts so the right professionals can act quickly 4. Evidence packs designed to reduce delays and disputes Learn more about our approach at /security (Crypto Security), /inheritance (Inheritance Planning), and /how-it-works (How It Works).

Practical preparation checklist for advisers

Step 1: Separate investment conversation from recoverability conversation. Even where you cannot advise on holdings, you can still help clients understand that crypto is uniquely easy to lose operationally. Step 2: Get clarity on the custody model. Options include exchange custody, single-signature self-custody, multi-signature, and third-party managed or institutional custody. Step 3: Ensure a basic evidence baseline exists. Document where the assets are held (platform or wallet type), what identifiers exist (accounts, devices, public addresses), who is a trusted contact and who is not, and what the first 48 hours plan is after an incident. Step 4: Build a scam-resistant pathway. Share guidance with clients and family members about recovery scams.

Quick checklist

1. Confirm client custody model (exchange, self-custody, multisig) 2. Document wallet types and platform accounts 3. Identify trusted contacts and their verification status 4. Create first 48 hours action plan 5. Establish evidence baseline with identifiers 6. Brief client on recovery scam risks 7. Align with existing will and estate planning 8. Schedule periodic review Related reading: /insights/seed-phrase-storage-best-practices-uk and /insights/crypto-security-uk-checklist

Next steps

Ready to help clients with crypto planning? Explore our adviser programme at /advisers or book a call at /book. Learn more: /security (Security), /inheritance (Inheritance), /how-it-works (How It Works). Back to Insights: /insights