FCA CP26/4: Application of the FCA Handbook for Regulated Cryptoasset Activities

 

The Financial Conduct Authority has published Consultation Paper CP26/4 setting out how key parts of the FCA Handbook will apply to firms undertaking newly regulated cryptoasset activities in the UK.

This is a key step towards the UK’s future cryptoasset regulatory regime and confirms that crypto firms will be subject to the same governance, conduct and accountability expectations as traditional financial services firms.

 

Context

Under the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025, firms carrying on activities such as issuing stablecoins, operating trading platforms, intermediating crypto transactions and providing custody services will require FCA authorisation.

CP26/4 forms part of a wider programme building the detailed rulebook ahead of the full regime. The FCA expects a crypto authorisation gateway to open in September 2026, with the regime fully operational from October 2027.

 

Purpose

Rather than creating a separate rulebook, the FCA is applying existing Handbook standards to cryptoasset firms. This brings crypto businesses into the core regulatory framework.

 

Key Areas

CP26/4 proposes to apply or adapt the following:

Consumer Duty for retail crypto activities
Complaints handling and redress under DISP
Core conduct standards for fair treatment and transparency
Restrictions on the use of credit to buy cryptoassets
Training and competence requirements
Senior Managers and Certification Regime
Regulatory reporting under SUP 16
Safeguarding and custody protections
Retail collateral protections in crypto borrowing
Location expectations for effective supervision

 

Strategic Significance

CP26/4 signals that crypto regulation will be full scope financial regulation, not a light touch regime. Firms that delay preparation may find regulatory expectations have already hardened before authorisation opens.

 

Consultation Deadline

Responses to CP26/4 are requested by 12 March 2026.

 

How Objectivus Can Help

Objectivus supports firms preparing for the UK crypto regime, including:

Regulatory readiness and gap analysis
Governance and SM&CR design
Consumer Duty and outcomes testing
Complaints and redress frameworks
Safeguarding and custody controls
Regulatory reporting and evidence frameworks
Board and senior management training

 

We help firms translate regulation into practical governance and control frameworks that will stand up to FCA scrutiny.

If you would like to discuss how CP26/4 may affect your business, please get in touch with us at info@objectivus.com.

Objectivus Financial Consulting Ltd