FCA proposes personal-wallet checks in nonbinding crypto guidance

Britain'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, 2026. The proposals address how firms assess transfers and operate their financial-crime controls. 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.