The UK Financial Conduct Authority (FCA) has initiated a consultation on new cryptocurrency regulations, aiming to establish a comprehensive framework for the industry. Announced on December 16, the consultation follows the UK government's decision to regulate the sector starting October 2027. The proposed rules address various aspects, including crypto asset listings, insider trading prevention, trading platform standards, and brokerage regulations. Additionally, the FCA is considering prudential requirements, clearer staking risk regulations, and enhanced protections for lenders and borrowers. The consultation period is open until February 12, 2026, with the FCA planning to finalize the regulatory framework by the end of next year. A recent FCA report highlighted a decline in UK adults holding cryptocurrency, dropping from 12% to 8% over the past year.