FCA publishes guidance on new crypto regime

The Financial Conduct Authority (FCA) has published guidance on how the laws underpinning the UK’s cryptoasset regime will apply to firms.

The regime comes into force on 25 October 2027, with applications for authorisation opening from 30 September 2026.

Firms will need to use the guidance to help them prepare for applying for authorisation.

It covers activities including qualifying stablecoins, operating cryptoasset trading platforms, dealing and arranging deals, safeguarding cryptoassets, and arranging cryptoasset staking.

The guidance follows the FCA’s work to prepare for the new regime, including its finalised rules and guidance in June 2026.

The FCA said it was helping firms to prepare through pre-application discussions and webinars.

Changes to the law have also been made by the government, including some ‘limited exclusions’ and additional clarity for certain technical service providers.

While these changes will not impact most crypto firms, the FCA plans to consult in October on targeted updates to its perimeter guidance in relation to the changes.

The consultation will cover the targeted changes relating to UK qualifying stablecoins, proprietary trading and market making, certain technology providers, decentralised protocols, safeguarding arrangements involving central securities depositaries, and financial promotions.

“We are building a crypto regime that firms, consumers and international partners can trust,” commented FCA executive director of consumers, payments and competition, David Geale.

“Getting ready for regulation starts with understanding how the regime applies to your business. This guidance gives firms the clarity they’ve asked for so they can prepare with confidence.”

Commenting on the guidance, Gherson Solicitors LLP consultant, Caroline Black, said: "The guidance sets out the FCA's interpretation of eight new regulated activities — including issuing qualifying stablecoins, safeguarding cryptoassets, arranging cryptoasset safeguarding, operating cryptoasset trading platforms, dealing in qualifying cryptoassets as principal or agent, arranging deals in qualifying crypto assts, making arrangements with a view to transaction in qualifying crypto assets and arranging qualifying cryptoasset staking.

“The most contentious element is the breadth of the ‘arranging deals’ activity, which the FCA acknowledges captures a wide range of intermediation and facilitation services.

“Industry respondents warned that technical infrastructure providers — including software developers, API providers and wallet interfaces — risk being swept into the regulatory perimeter despite having no control over transactions.

“The FCA's position is that the scope is set by parliament, and the guidance cannot narrow it. However, this will be kept under review if new legislation is passed.

“Equally significant is the absence of an Overseas Persons Exclusion for cryptoasset activities — a marked departure from the traditional FSMA framework.

“This means overseas firms serving UK consumers cannot rely on the familiar safe harbour available in traditional financial services and must instead obtain FCA authorisation.”

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