United Kingdom: Financial Conduct Authority opened consultation on prudential regime for cryptoasset firms under Financial Services and Markets Act 2023 (CP25/15)

On 28 May 2025, the UK Financial Conduct Authority (FCA) opened a public consultation on a prudential regime for cryptoasset firms (CP25/15), open until 31 July 2025. The consultation sets out proposed rules under the Financial Services and Markets Act 2023 for cryptoasset firms subject to FCA authorisation, excluding detailed requirements on stablecoin issuance and custody (covered under CP25/14). The proposals introduce 2 sourcebooks: COREPRU, containing core prudential standards applicable to all regulated firms and CRYPTOPRU, which sets out sector-specific prudential rules for cryptoasset businesses. In addition, provisions include own funds requirements based on a three-tier capital structure (Common Equity Tier 1, Additional Tier 1, Tier 2), with deductions for intangible assets and firm-issued cryptoassets, liquidity standards ensuring short-term financial resilience and rules on concentration risk to manage exposure to single counterparties and custodians. Furthermore, the regime also outlines expectations for governance, risk management, operational resilience, and wind-down planning tailored to cryptoasset firms.