FCA Crypto Regulation (UK): What Professionals Need to Know Before Clients Mention Crypto

The FCA is expanding crypto regulation beyond anti-money laundering. A practical overview for accountants, solicitors, and financial advisers on the direction of travel and client conversations.

The UK direction of travel

The FCA is moving towards comprehensive crypto regulation. Current oversight covers anti-money laundering registration and financial promotions, but new proposals extend to trading platforms, intermediaries, lending, staking, and market abuse. Draft legislation and consultation papers published in late 2025 signal that the full regime will take effect by October 2027. For professionals advising clients, this means crypto is becoming a regulated activity rather than an unregulated edge case. Bitzo never holds client keys or funds and never requests seed phrases or private keys.

Common client risk points

Clients with crypto holdings face several practical risks that advisers should understand. Promotion risk: clients may have invested based on non-compliant promotions. Scam risk: crypto recovery scams target bereaved families and executors. Operational risk: without documented recovery processes, assets can be permanently lost if something happens to the holder. Continuity risk: family members or executors may not know crypto exists, where it is held, or how to access it. These risks exist regardless of the regulatory environment and require operational solutions.

A simple professional conversation framework

Five questions to ask clients who mention crypto: 1) Do you hold cryptocurrency, and approximately how much? 2) Is it held on exchanges, in self-custody wallets, or both? 3) What records exist for acquisition costs and transaction history? 4) Does anyone else know about your holdings and how to access them? 5) What happens to your crypto if something happens to you? These questions help surface compliance gaps, inheritance risks, and opportunities to refer to specialists. They do not require technical expertise to ask.

How Bitzo fits alongside the existing adviser team

Bitzo works alongside accountants, solicitors, IFAs, and wealth managers to address the operational gaps in crypto inheritance planning. Accountants handle tax compliance and record-keeping guidance. Solicitors draft wills and handle probate. Wealth managers advise on portfolio structure. Bitzo coordinates the security and recovery documentation: verified trusted contacts, Policy Packs, audit trails, and structured recovery workflows. Our role is strictly operational. We provide coordination, not financial, legal, or tax advice. Learn more about our adviser programme.

What the FCA is proposing

The FCA consultation papers (CP25/40, CP25/41, CP25/42) cover: authorisation requirements for trading platforms; conduct and execution requirements for intermediaries; transparency rules for pre and post-trade information; a market abuse regime for cryptoassets (MARC) prohibiting insider trading and manipulation; admission and disclosure requirements similar to prospectus rules; and prudential requirements including minimum capital standards. The consultation closes in February 2026, with final rules expected later that year and the full regime taking effect in October 2027.

Preparing clients now

Advisers can help clients prepare by encouraging proper record-keeping, asking about inheritance planning, and referring to specialists where appropriate. Bitzo provides a structured approach to crypto documentation and recovery planning that complements existing adviser relationships. To discuss how we can support your clients, book a call or explore our adviser resources.

Disclaimer

Bitzo provides operational coordination, not financial, legal, or tax advice. The information in this article is for general guidance only and does not constitute professional advice. Consult a qualified adviser for your specific situation.