The U.K. Financial Conduct Authority has set the next stage of its crypto rulebook, giving firms a clear path toward full authorization before the new regime starts.
Summary
- Crypto firms must seek FCA approval by February 2027 or risk losing UK access later.
- Stablecoin issuers won softer capital rules, but must still meet new reserve and redemption standards.
- Existing AML registrations will not transfer automatically, forcing firms to file fresh authorization applications soon.
The regulator says the new cryptoasset regime is expected to come into force on Oct. 25, 2027, bringing crypto firms into its wider financial services rulebook.
The application period will run from Sept. 30, 2026 to Feb. 28, 2027, according to the FCA’s preparation guidance. Firms that want to carry out regulated crypto activities in the U.K. will need FCA authorization, either through a new application or a change to existing permissions.
Existing registrations will not carry over
The new regime means current anti-money-laundering registrations will not be enough. The FCA says firms already operating under the Money Laundering Regulations must still prepare and submit applications under the incoming Financial Services and Markets Act framework.
The rules will cover crypto trading platforms, custodians, stablecoin issuers, staking services and other crypto intermediaries. Firms that apply late or send poor applications may face delays, and the regulator has urged companies to prepare early to avoid business disruption.
As previously reported, the FCA had already opened a final consultation on stablecoin issuance, trading platforms, custody and staking before the wider regime switch-on. That consultation closed on June 3, with firms expected to prepare for full authorization before the October 2027 start date, according to earlier coverage.
Stablecoin rules are softened
The final framework also changes part of the FCA’s stablecoin plan after industry feedback. Reuters reported that the regulator cut a proposed capital requirement for stablecoin issuers to 1% of issued value, down from an earlier 2% proposal.
David Geale, the FCA’s executive director for payments and digital finance, said, “The feedback we got was that we’re starting a bit high.” He added that the final rules were based on “evidence … from industry,” Reuters reported.
Most stablecoins will fall under FCA supervision, while tokens judged to be systemic will face tougher Bank of England oversight. Reuters also reported that the FCA’s issuer rules apply to sterling-denominated stablecoins, a market that remains small compared with dollar-backed tokens.
DeFi and market rules remain in focus
The broader framework also brings market conduct into the FCA’s crypto rulebook. The regulator has listed admissions, disclosures, market abuse rules, custody, prudential standards and consumer duties among the areas covered by its published consultations and future policy statements.
The Guardian reported that crypto firms in the U.K. will need to prove they can handle market stress, hold capital against risky assets and submit annual stress tests. Geale said, “For the first time, we’ve got a comprehensive regulatory framework for crypto in the UK.”
The FCA also plans more work on decentralized finance. As reported by crypto.news, the U.K. framework is expected to distinguish “truly decentralised” services from platforms with an identifiable operator or controlling entity, with larger front ends and controlled DAOs more likely to fall inside supervision.
The new rules place the U.K. closer to a full licensing model for digital assets. Firms now have a set application window, a 2027 start date and a clearer view of how stablecoins, exchanges, custody and staking will be treated under the FCA’s final framework.
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