The UK Financial Conduct Authority has launched the next phase of its crypto rulebook, giving firms a clear path to full approval before the new regime kicks in.
Summary
- Crypto firms must seek FCA approval by February 2027 or risk losing access to the UK later.
- Stablecoin issuers have won soft currency regulations, but still have to meet new regulatory and redemption standards.
- Existing AML registrations will not be automatically transferred, forcing firms to apply for new authorizations soon.
The regulator says the new cryptoasset regulation is expected to come into effect on October 25, 2027, bringing crypto firms into its broader financial services rulebook.
The application period will run from September 30, 2026 to Feb. 28, 2027, according to the FCA preparation guide. Firms seeking to carry out regulated crypto activities in the UK will need FCA approval, either through a new application or through changes to existing permits.
Existing registrations will not continue
The new regime means that the current anti-money laundering registration 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.
The rules will cover crypto trading platforms, custodians, stablecoin issuers, staking services and other crypto intermediaries. Firms that apply late or submit poor applications may face delays, and the regulator has urged companies to prepare in advance to avoid business disruption.
As previously reported, the FCA has already opened a final consultation on stablecoin issuance, trading platforms, storage and staking before opening the wider regime. That negotiation was closed on June 3, the firms are expected to prepare the full approval before the first day of October 2027, according to a previous report.
Stablecoin rules are lenient
The final draft also modifies part of the FCA’s stablecoin scheme following industry feedback. Reuters reported that the regulator cut the proposed fee requirement for stablecoin issuers to 1% of the amount issued, down from an earlier proposal of 2%.
David Geale, the FCA’s executive director of payments and digital finance, said, “The feedback we’re getting is that we’re starting at the top.” He added that the final rules were based on “evidence … from the industry,” Reuters reported.
Most stablecoins will fall under the supervision of the FCA, while tokens judged to be systemic will face strict supervision from the Bank of England. Reuters also reported that the FCA’s issuance rules apply to sterling-denominated stablecoins, a market that remains small compared to dollar-backed tokens.
DeFi and market rules remain in place
The broader framework also brings market conduct into the FCA’s crypto rulebook. The regulator has listed acceptance, disclosure, market abuse rules, maintenance, monitoring standards and consumer activities among the areas covered in the published consultation and future policy statements.
The Guardian reported that crypto firms in the UK will need to prove they can withstand market stress, hold cash against risky assets and submit an annual stress test. Geale said, “For the first time, we have a comprehensive crypto regulatory framework in the UK.”
The FCA is also planning further work on distributed funds. As reported by crypto.news, the UK framework is expected to separate “truly decentralized” services from platforms with a virtual operator or regulatory body, with large margins and regulated DAOs likely to fall within oversight.
The new rules move the UK closer to a full licensing model for digital goods. Firms now have a set application window, a start date of 2027 and a clear idea of how fixed income, swaps, custody and equity will be managed under the FCA’s final framework.
