The UK Financial Conduct Authority (FCA) has launched a consultation on updated financial crime guidance for crypto businesses, focusing on customer checks, blockchain analytics, and the Travel Rule. The consultation, opened on October 23, 2026, aims to clarify supervisory expectations for firms operating under the expanded regulatory regime. Responses are due by December 24, 2026, and the guidance itself will not create new rules but will help firms understand their obligations.
The consultation paper outlines best practices for enhanced due diligence, onboarding, and transaction monitoring. It emphasizes the importance of integrating blockchain analytics into existing control systems, noting that a blockchain record alone does not determine the credibility of a customer’s explanation or the need for further scrutiny. The FCA also highlights the distinction between transaction risk and market risk, particularly for stablecoin transfers.
The guidance reminds firms that governance must adapt as their businesses grow, including ensuring that policies and staff training differentiate between obligations under proceeds-of-crime and terrorism legislation. The FCA stresses that buying a screening product is only part of the job; firms must also set thresholds, review alerts, and document decisions to ensure effective compliance.
The consultation is part of the FCA’s broader cryptoasset framework, which is expected to begin on October 25, 2027. While the guidance does not postpone existing anti-money-laundering duties, it provides a roadmap for firms to translate their obligations into day-to-day operations. The FCA plans to publish feedback and the final text in a policy statement after the consultation closes.