UK Crypto Regulation Enters Countdown: What Changes Are in the FCA's New Rules?
UK Crypto Regulation Enters Countdown: Key Changes in FCA's New Rules
The UK Financial Conduct Authority (FCA) has published its final crypto asset regulatory policy, marking a shift from consultation to implementation. The new regime, set to fully expand from October 25, 2027, moves crypto businesses from registration to authorisation.
A critical window from September 30, 2026, to February 28, 2027, allows existing firms to apply for transitional provisions, enabling them to continue operating while their authorisation is reviewed. Existing registrations will not automatically convert.
The rules cover a broad range of activities including stablecoin issuance, custody, trading platform operation, arranging deals, staking, and lending. Authorised firms must meet new prudential capital requirements, with permanent minimum capital ranging from £750,000 for proprietary trading to £75,000 for arranging deals. They must also hold a basic liquid asset buffer for operational resilience.
Market integrity rules now apply to trading platforms and intermediaries, covering areas like insider trading and requiring best execution checks against at least three UK-authorised venues. Custodians face enhanced client asset protection rules (CASS 17), focusing on ownership, reconciliation, and private key management.
For stablecoins, issuers must provide full backing from issuance and allow redemption at par value within a T+1 timeframe. Reserve assets are categorised into core (e.g., demand deposits) and expanded types, with specific liquidity requirements (ODDR and CBAR) to ensure redemption capacity. Systemically important stablecoin issuers may be jointly regulated by the FCA and the Bank of England.
The FCA cautions that the rules do not eliminate the high-risk, speculative nature of most crypto assets but establish a more comprehensive financial regulatory framework for the industry.
Foresight News07/02 09:16