{"id":14924,"date":"2026-10-26T08:49:49","date_gmt":"2026-10-26T08:49:49","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=14924"},"modified":"2026-10-26T08:49:49","modified_gmt":"2026-10-26T08:49:49","slug":"personal-wallet-checks-fca-proposes-nonbinding-guidance","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=14924","title":{"rendered":"Personal-wallet checks: FCA proposes nonbinding guidance"},"content":{"rendered":"<p><\/p>\n<div data-cs-editorial-figure-scope=\"\" data-cs-editorial-quote-scope=\"\" data-cs-image-viewer-scope=\"\" data-single-article-content=\"\">\n<p>Britain&#8217;s Financial Conduct Authority has proposed treating enhanced checks on crypto transfers involving personal, or unhosted, wallets as good practice in nonbinding guidance. It also criticizes firms that cannot explain the risk scores they use.<\/p>\n<p>The regulator opened consultation CP26\/38 on Oct. 23, seeking feedback on changes to its Financial Crime Guide until Dec. 24, 2026. The proposals address how firms assess transfers and operate their financial-crime controls.<\/p>\n<div class=\"cs-article-embed\">\n<p> <span class=\"cs-article-embed__related-reading\">Related Reading<\/span><\/p>\n<h3 class=\"cs-article-embed__title\">UK&#8217;s FCA says crypto apps may need licenses when algorithms choose trade routes<\/h3>\n<\/p>\n<p> <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\"> <i class=\"fa-light fa-arrow-up-right\"\/> <\/span> <\/div>\n<p>Draft section FCG 3.2.8 lists applying enhanced due diligence, meaning more intensive checks, to transactions involving unhosted wallets as a good-practice example. For someone moving crypto from a personal wallet to a UK firm, the proposed example concerns how the receiving firm checks that transfer.<\/p>\n<p>The proposed guidance is nonbinding. The FCA says the Guide contains no rules and imposes no new requirements, although it expects firms to read and consider it when establishing effective controls. Departing from the guidance would not, by itself, establish a breach of FCA rules.<\/p>\n<p><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter shoggoth-infographic shoggoth-infographic-portrait wp-image-576557\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/exec-e2ee5eff-abde-489d-94b3-c172d3067175.png\" alt=\"FCA CP26\/38 proposed nonbinding guidance contrasts enhanced checks for unhosted-wallet transfers with unexplained third-party scores and rigid tracing rules; consultation runs October 23 to December 24, 2026.\" width=\"720\" height=\"900\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/exec-e2ee5eff-abde-489d-94b3-c172d3067175.png 1122w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/exec-e2ee5eff-abde-489d-94b3-c172d3067175-240x300.png 240w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/exec-e2ee5eff-abde-489d-94b3-c172d3067175-819x1024.png 819w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/exec-e2ee5eff-abde-489d-94b3-c172d3067175-768x960.png 768w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\"\/><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"lazyload aligncenter shoggoth-infographic shoggoth-infographic-portrait wp-image-576557\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/exec-e2ee5eff-abde-489d-94b3-c172d3067175.png\" alt=\"FCA CP26\/38 proposed nonbinding guidance contrasts enhanced checks for unhosted-wallet transfers with unexplained third-party scores and rigid tracing rules; consultation runs October 23 to December 24, 2026.\" width=\"720\" height=\"900\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/exec-e2ee5eff-abde-489d-94b3-c172d3067175.png 1122w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/exec-e2ee5eff-abde-489d-94b3-c172d3067175-240x300.png 240w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/exec-e2ee5eff-abde-489d-94b3-c172d3067175-819x1024.png 819w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/10\/exec-e2ee5eff-abde-489d-94b3-c172d3067175-768x960.png 768w\" data-sizes=\"(max-width: 720px) 100vw, 720px\"\/><\/p>\n<h2>Risk scores and tracing rules<\/h2>\n<p>The monitoring proposals also address how firms reach those decisions. Draft FCG 3.2.5 identifies as poor practice using third-party technology without being able to explain or evidence the basis of its findings or scoring.<\/p>\n<aside id=\"cs-inline-newsletter-1\" class=\"cs-inline-newsletter cs-newsletter-brand\" data-newsletter-edition=\"catalyst\" data-inline-newsletter=\"\" data-newsletter-placement=\"article-midpoint\" aria-labelledby=\"cs-inline-newsletter-1-title\" aria-describedby=\"cs-inline-newsletter-1-copy\">\n<div class=\"cs-inline-newsletter__inner\">\n<div class=\"cs-inline-newsletter__content\">\n<div class=\"cs-inline-newsletter__editorial\">\n<p class=\"cs-inline-newsletter__eyebrow\">The Catalyst<\/p>\n<p class=\"cs-newsletter-frequency\">Daily Newsletter<\/p>\n<h2 id=\"cs-inline-newsletter-1-title\" class=\"cs-inline-newsletter__title\">Know what\u2019s moving crypto.<\/h2>\n<p id=\"cs-inline-newsletter-1-copy\" class=\"cs-inline-newsletter__copy\">Start with the stories that matter. Get the context behind the headlines and a clear view of what to watch next.<\/p>\n<\/div>\n<div class=\"cs-inline-newsletter__art\" aria-hidden=\"true\"> <img loading=\"lazy\" src=\"https:\/\/cryptoslate.com\/wp-content\/themes\/cryptoslate-2020\/images\/catalyst-newsletter-scrapbook-v3.webp\" alt=\"\" width=\"640\" height=\"640\" loading=\"lazy\" decoding=\"async\"\/><img loading=\"lazy\" class=\"lazyload\" src=\"https:\/\/cryptoslate.com\/wp-content\/themes\/cryptoslate-2020\/images\/catalyst-newsletter-scrapbook-v3.webp\" alt=\"\" width=\"640\" height=\"640\" loading=\"lazy\" decoding=\"async\"\/><\/div>\n<\/div>\n<\/div>\n<\/aside>\n<p>It also criticizes rigid rules about how many transaction \u201chops,\u201d or transfer steps, a firm examines when those rules fail to account for risk-appropriate measures. The issue is a tracing rule that disregards risk, rather than the mere use of a numerical limit.<\/p>\n<div class=\"cs-article-embed\">\n<p> <span class=\"cs-article-embed__related-reading\">Related Reading<\/span><\/p>\n<h3 class=\"cs-article-embed__title\">FCA draws the UK boundary for offshore crypto platforms ahead of 2027 rules<\/h3>\n<\/p>\n<p> <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\"> <i class=\"fa-light fa-arrow-up-right\"\/> <\/span> <\/div>\n<p>Existing duties already provide the backdrop. Under the UK Travel Rule, cryptoasset businesses have been required to collect, verify and share transfer information since Sept. 1, 2023. The FCA also says firms remain responsible for compliance when they use third-party suppliers.<\/p>\n<p>The regulator does not expect the proposed Guide updates to materially increase compliance activity or consumer costs, or materially change firms&#8217; products and services. It describes the changes as clarifying existing expectations and established practice.<\/p>\n<p>The consultation covers firms supervised by the FCA for financial crime, including cryptoasset businesses under the Money Laundering Regulations. The FCA plans to consider responses and publish feedback and the final Guide text in a Policy Statement; it has not specified a publication date in the consultation.<\/p>\n<div class=\"cs-article-embed\">\n<p> <span class=\"cs-article-embed__related-reading\">Related Reading<\/span><\/p>\n<h3 class=\"cs-article-embed__title\">UK\u2019s 2027 crypto rules could block new business with existing customers<\/h3>\n<\/p>\n<p> <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\"> <i class=\"fa-light fa-arrow-up-right\"\/> <\/span> <\/div>\n<\/div>\n<p>Featured,Regulation,Wallets#Personalwallet #checks #FCA #proposes #nonbinding #guidance1793004589<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Britain&#8217;s Financial Conduct Authority has proposed treating enhanced checks on crypto transfers involving personal, or unhosted, wallets as good practice in nonbinding guidance. It also criticizes firms that cannot explain the risk scores they use. The regulator opened consultation CP26\/38 on Oct. 23, seeking feedback on changes to its Financial Crime Guide until Dec. 24,<\/p>\n","protected":false},"author":1,"featured_media":14925,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[4627,4208,6818,7583,7582,2455],"class_list":["post-14924","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ethereum","tag-checks","tag-fca","tag-guidance","tag-nonbinding","tag-personalwallet","tag-proposes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Personal-wallet checks: FCA proposes nonbinding guidance - Crypto News: Latest Cryptocurrency News and Analysis<\/title>\n<meta name=\"description\" content=\"The FCA proposes personal-wallet checks and scrutiny of unexplained crypto risk scores in nonbinding guidance. 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