In Conversation With Dilan Bastin about the FCA 25/1 DP

𝗪𝗵𝗮𝘁 𝗱𝗼𝗲𝘀 𝘁𝗵𝗲 𝗳𝘂𝘁𝘂𝗿𝗲 𝗼𝗳 𝗰𝗿𝘆𝗽𝘁𝗼 𝗿𝗲𝗴𝘂𝗹𝗮𝘁𝗶𝗼𝗻 𝗹𝗼𝗼𝗸 𝗹𝗶𝗸𝗲 𝗶𝗻 𝘁𝗵𝗲 𝗨𝗞?We sat down with Dilan Bastin to have a conversation about the incoming crypto-asset regime in the UK and the newly released Discussion Paper 25/1 (DP25/1)—a foundational step toward building a crypto market that is not only innovative, but also safe, competitive, and consumer-focused.Here’s what she shared with us:

𝗤: 𝗗𝗶𝗹𝗮𝗻, 𝘄𝗵𝗮𝘁 𝗶𝘀 𝘁𝗵𝗲 𝗴𝗼𝗮𝗹 𝗼𝗳 𝘁𝗵𝗲 𝗙𝗖𝗔’𝘀 𝗗𝗶𝘀𝗰𝘂𝘀𝘀𝗶𝗼𝗻 𝗣𝗮𝗽𝗲𝗿 𝟮𝟱/𝟭?

𝘿𝙞𝙡𝙖𝙣: The paper illustrates the FCA’s blueprint for bringing structure and stability to the crypto space. The aim is clear: bring together industry experts to help create a regulatory framework that protects consumers, upholds market integrity, and fosters long-term growth without stifling innovation. It’s about making the UK a credible, competitive hub for crypto by setting standards that are both robust and proportionate.For firms like ours, the discussion paper signals a shift from uncertainty to clearer expectations. The FCA is inviting input on how best to regulate areas like trading platforms, intermediaries, lending, and DeFi—giving us a chance to shape the rules before they’re finalised. It's a pivotal moment for industry engagement and responsible innovation.

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𝗤: 𝗪𝗵𝗮𝘁 𝗮𝗿𝗲𝗮𝘀 𝗱𝗼𝗲𝘀 𝗗𝗣𝟮𝟱/𝟭 𝗰𝗼𝘃𝗲𝗿 𝘀𝗽𝗲𝗰𝗶𝗳𝗶𝗰𝗮𝗹𝗹𝘆?

𝘿𝙞𝙡𝙖𝙣: It focuses on six core areas:

• 𝗧𝗿𝗮𝗱𝗶𝗻𝗴 𝗽𝗹𝗮𝘁𝗳𝗼𝗿𝗺𝘀 – introducing authorisation, market conduct, and operational standards.

• 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗶𝗼𝗻 – regulating brokers and advisers who facilitate cryptoasset activity.

• 𝗟𝗲𝗻𝗱𝗶𝗻𝗴 & 𝗯𝗼𝗿𝗿𝗼𝘄𝗶𝗻𝗴 – exploring if and how these services should be offered to retail clients.

• 𝗦𝘁𝗮𝗸𝗶𝗻𝗴 – ensuring transparency and informed consent around staking programs.

• 𝗨𝘀𝗲 𝗼𝗳 𝗰𝗿𝗲𝗱𝗶𝘁 – the FCA is considering restrictions on purchasing crypto with borrowed funds.

• 𝗗𝗲𝗙𝗶 – assessing how to approach decentralised systems where control is less visible.

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𝗤: 𝗪𝗵𝘆 𝗶𝘀 𝘁𝗵𝗶𝘀 𝗽𝗮𝗽𝗲𝗿 𝘀𝗶𝗴𝗻𝗶𝗳𝗶𝗰𝗮𝗻𝘁?

𝘿𝙞𝙡𝙖𝙣: It marks the FCA’s first real step toward a comprehensive regulatory regime for cryptoassets in the UK. Until now, the space has operated in a bit of a grey area and under a variety of rules—firms like ours have worked hard to meet high standards, but without clear, consistent guidance. DP25/1 starts to fill that gap. It sets out the FCA’s thinking on how crypto activities should be overseen and invites the industry to help shape that future. That level of collaboration is rare, and incredibly important if the UK wants to lead on innovation while maintaining trust and credibility in its financial system.

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𝗤: 𝗪𝗵𝗮𝘁’𝘀 𝘁𝗵𝗲 𝘁𝗶𝗺𝗲𝗹𝗶𝗻𝗲 𝗮𝗻𝗱 𝗵𝗼𝘄 𝗰𝗮𝗻 𝘁𝗵𝗲 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝘆 𝗿𝗲𝘀𝗽𝗼𝗻𝗱?

𝘿𝙞𝙡𝙖𝙣: The FCA is accepting responses until 13 June 2025. Anyone in the crypto space—from trading platforms and token projects to legal advisors and compliance leads—should take part. We have a crucial opportunity to help shape a framework that’s workable, proportionate, and forward-looking.(Just another idea)Q: What’s your message to other VASPs who haven’t yet engaged with DP25/1? Don’t sit this one out. This is the FCA asking for input before the rules are locked in. If you want regulation that’s workable and reflects the realities of running a crypto business, now is the time to speak up. Silence now could mean missed opportunities later.

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