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ARTICLE · 07 JULY 2025

Crypto Regulation: Prudential Requirements

K&L Gates
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CP25/15 sets out proposals for certain aspects of the prudential requirements for crypto firms. There will be another consultation on additional rules

United KingdomTechnology
Judith E. Rinearson
Judith E. Rinearson
Kai Zhang
Kai Zhang

The United Kingdom is quickening the pace on the new crypto regulatory regime. The Financial Conduct Authority (FCA) published three papers in quick succession in May 2025: a discussion on key policy positions ( DP25/1) and two consultations on detailed rules ( CP25/14 and CP25/15). This blog focuses on CP25/15. Please see our separate blogs on the other proposals by going here and here.

CP25/15 sets out proposals for certain aspects of the prudential requirements for crypto firms. There will be another consultation on additional rules. The new requirements are largely modelled on the existing rules for investment firms. In short, an authorised cryptoasset firm must hold the required amount of regulatory capital on an ongoing basis. This is referred to as the "own funds" requirement.

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