Innovate Finance recently responded to the FCA's Discussion Paper DP25/1 on regulating cryptoasset activities.

We strongly support the FCA’s intention to establish a clear and effective regulatory framework for cryptoassets in the UK. A well-designed regime is essential to foster innovation, ensure consumer protection, and enhance market integrity, thereby solidifying the UK’s position as a global hub for financial technology.

Our response builds upon our previous submissions, including our feedback on DP23/4 regarding stablecoins and DP24/4 on admissions and disclosures.

In the response, we reiterate our call for a regulatory approach that is proportionate, principles-based, and internationally competitive. It is imperative that the final regime does not stifle innovation through overly prescriptive rules but instead empowers firms to develop new products and services within a robust and clear framework.

Our key tenets remain consistent: regulation should be guided by the principle of ‘same risk, same regulatory outcome’ and it must support the international competitiveness and growth of the UK economy, in line with the FCA’s secondary objective for growth and competitiveness.

We stand ready to engage further with the FCA to help shape a world-leading regulatory environment for cryptoassets in the UK.

Read our response here