The FCA is seeking views on the future regulation of specific cryptoasset activities, ahead of legislation to bring them within regulation.

It said clear crypto regulation will boost confidence in the sector.

In a discussion paper published on Friday, the FCA said it is seeking views on intermediaries, staking, lending and borrowing, and decentralised finance (DeFi).

With more people using credit to purchase crypto, the discussion paper also considers whether restrictions should be applied in that area.

The regulator’s move follows the Government publishing draft legislation for bringing crypto assets into the regulatory perimeter on Wednesday.

The final version of the crypto asset legislation will be brought forward by the Government “at the earliest opportunity” following feedback on the draft from the industry.

David Geale, executive director of payments and digital finance at the FCA, said: “Crypto is a growing industry. Currently largely unregulated, we want to create a crypto regime that gives firms the clarity they need to safely innovate, while delivering appropriate levels of market integrity and consumer protection.”

He said the regulator’s aim is to “drive sustainable, long-term growth of crypto in the UK. We’re asking whether we have got the balance right.”

The deadline for views is 13 June. The FCA said it will consult on the final regime, having considered the feedback from the discussion paper, later this year.

The FCA published a roadmap of key dates for the development and introduction of the UK’s crypto asset regime in November.

The FCA added: “We continue to remind people that while we continue to develop the UK’s crypto regulation, crypto remains largely unregulated in the UK and high risk.”