FCA proposes personal-wallet checks in nonbinding crypto guidance
Summary
The UK Financial Conduct Authority proposed nonbinding guidance treating enhanced due diligence on crypto transfers involving unhosted wallets as good practice. It also flagged as poor practice relying on third-party risk scores firms cannot explain, or using transaction-hop limits that ignore risk. Consultation CP26/38 runs until Dec. 24, 2026. The FCA says the guidance creates no new rules or material compliance costs, but firms should consider it alongside existing duties, including the Travel Rule. The regulator will review responses before publishing a final Guide; no date has been set.
