UK FCA Seeks Public Feedback on Digital Asset Regulation

The UK’s Financial Conduct Authority (FCA) seeks public input on digital asset services regulation as part of efforts to protect users and guide businesses. Key points include:

The FCA released a discussion paper requesting feedback on staking, lending, borrowing, crypto intermediaries, and DeFi.
Concerns were raised about using credit for crypto purchases, prompting discussions on potential limits.
David Geale emphasized the need for a regulatory framework to support safe innovation while protecting users.
The paper follows draft legislation by the UK Treasury, which will grant the FCA oversight of certain crypto activities.
This initiative is part of the FCA’s broader Crypto Roadmap project, addressing market abuse, token listing, stablecoin management, and financial rules for crypto firms.
The Polkadot Blockchain Academy launched an educational course for lawmakers to enhance their understanding of the crypto sector.
The FCA's five-year strategy (2025-2030) aims to improve rule transparency, support economic growth, enhance financial literacy, and combat financial crime.
Feedback deadline is June 13, 2025, followed by a full consultation later this year before finalizing regulations.

In parallel, US lawmaker Gerald E. Connolly urged the US Treasury to halt plans for a strategic Bitcoin reserve, citing unsound fiscal policy concerns.