The UK’s new cryptoasset framework will bring a broad range of activities within FCA regulation, including trading, custody, dealing, lending, staking and stablecoin issuance. This section brings together the legislation establishing the regime, the authorisation process and the FCA’s detailed rules on conduct, safeguarding, prudential requirements, disclosures and market abuse. It also covers the Bank of England’s emerging framework for stablecoins that may become systemically important.
Developments covered
🟥 Urgent / significant impact
Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026
From October 2027, a range of cryptoasset activities will be regulated under FSMA, and firms will require FCA authorisation to carry out these activities
The Regulations establish a comprehensive framework for cryptoasset activities, bringing activities such as issuance, safeguarding, trading platform operation, dealing, arranging and staking within the FCA’s regulatory perimeter. Firms carrying on these activities by way of business will require FCA authorisation. The regime also introduces new restrictions on public offers of qualifying cryptoassets, a market abuse framework covering insider dealing and market manipulation, and updates to the AML and financial promotions regimes to reflect the new regulatory perimeter.
Key dates
- 21 days after publication: FCA rule-making powers take effect
- 30 September 2026 to 28 February 2027: FCA authorisation application window
- 25 October 2027: Regime comes into force
Legal issue/risk
Firms carrying on regulated cryptoasset activities without FCA authorisation will commit a criminal offence once the regime takes effect. The Regulations also introduce new requirements for cryptoasset offers and market abuse, while changes to the regulatory perimeter mean firms should review existing AML and financial promotions compliance arrangements.
Next steps
- Assess whether your cryptoasset activities fall within the new regulated perimeter and whether FCA authorisation will be required.
- Begin preparing authorisation applications well ahead of the application window.
- Monitor FCA rulemaking and guidance as the detailed regime develops.
- Review AML and financial promotions controls against the new framework.
🟥 Urgent / significant impact
Cryptoasset authorisation gateway opens
The FCA has set out how firms will apply for authorisation under the new UK cryptoasset regime, including key application deadlines and transitional arrangements.
FCA has published guidance explaining how the authorisation gateway for the new regulated cryptoasset activities under FSMA 2000 will operate. Firms wishing to undertake regulated cryptoasset activities will need FCA authorisation or, where appropriate, a variation of existing permissions. Existing MLR registration will not convert automatically to FCA authorisation.
The FCA will also offer information sessions and its optional pre-application support service (PASS). Firms applying within the application window should receive a determination before the new regime comes into force or, where necessary, benefit from saving provisions while their application is determined. Firms applying late may be restricted to servicing existing contracts only.
Key dates
- July 2026: PASS meetings begin
- 30 September 2026 to 28 February 2027: Authorisation gateway
- 25 October 2027: Regime comes into force
Legal issue/risk
MLR-registered firms must obtain FCA authorisation to continue carrying on regulated cryptoasset activities. Firms that miss the application window risk losing access to saving provisions, being unable to take on new UK business, or ultimately losing permission to operate.
Next steps/action required
- Confirm whether your activities require FCA authorisation or a variation of existing permissions.
- Prepare and submit an application early within the gateway window.
- Consider using the FCA’s PASS service and information sessions to support application readiness.
- MLR-registered firms should not assume existing registration will carry over into the new regime.
🟥 Urgent / significant impact
PS26/11 Crypto Regime Regulated Cryptoasset Activities
The FCA’s final rules establish the conduct and operational requirements for regulated cryptoasset activities, including trading platforms, dealing, lending, staking, safeguarding and certain DeFi arrangements.
PS26/11 sets out the FCA’s final rules for the core regulated cryptoasset activities under the Cryptoasset Regulations 2026. It covers operating a qualifying cryptoasset trading platform (QCATP), dealing, arranging, lending and borrowing, staking, safeguarding, and the FCA’s current approach to DeFi, where there is an identifiable controlling entity.
The FCA has largely confirmed its consultation proposals while refining areas such as best execution, pre-trade transparency, retail protections for lending and staking, safeguarding under CASS 17, and the treatment of DeFi. Further guidance on assessing decentralisation is expected.
Key dates
- Autumn 2026: Final perimeter guidance expected
- 30 September 2026 to 28 February 2027: Authorisation gateway
- 25 October 2027: Rules apply
- Date TBC: Further DeFi guidance
Legal issue/risk
Firms carrying on regulated cryptoasset activities for UK consumers, including overseas firms, may require FCA authorisation. Missing the application window could restrict firms’ ability to continue operating under transitional arrangements. The new safeguarding requirements under CASS 17 also introduce significant operational, record-keeping and notification obligations.
Next steps/action required
- Confirm which regulated cryptoasset activities your firm carries on and whether it falls within scope.
- Prepare an authorisation application ahead of the gateway window.
- Assess readiness for CASS 17 safeguarding requirements, including custody, record-keeping and notification processes.
- Monitor forthcoming perimeter and DeFi guidance, and consider the interaction with PS26/9, PS26/12 and PS26/13.
🟥 Urgent / significant impact
PS26/13 Crypto Regime Application of FCA Handbook for Regulated Cryptoasset Activities
The FCA’s final policy statement applies key Handbook requirements, including Consumer Duty, SM&CR, CASS, SYSC, DISP and regulatory reporting, to regulated cryptoasset firms.
PS26/13 sets out how the FCA’s cross-cutting Handbook obligations apply to firms carrying on regulated cryptoasset activities. Most firms will be subject to requirements including Consumer Duty, Conduct of Business (COBS), the Senior Managers and Certification Regime (SM&CR), SYSC, CASS, DISP and Financial Ombudsman Service access, alongside regulatory reporting obligations.
The FCA has broadly confirmed its consultation proposals while making targeted refinements, including the treatment of UK-issued qualifying stablecoins, the application of Consumer Duty in certain cryptoasset activities, and arrangements for dual-regulated firms operating through UK branches. Further perimeter guidance is expected in autumn 2026.
Key dates
- 30 September 2026 to 28 February 2027: Authorisation gateway
- Autumn 2026: Final perimeter guidance expected
- 25 October 2027: Rules apply
Legal issue/risk
Most Handbook obligations will apply once firms are authorised, meaning firms will need appropriate governance, systems and controls in place before go-live. Consumer Duty and SM&CR will increase senior management accountability, while aspects of the Duty continue to evolve pending related FCA guidance.
Next steps/action required
- Identify which FCA Handbook sourcebooks apply to your regulated cryptoasset activities.
- Carry out a gap analysis ahead of the authorisation gateway, prioritising Consumer Duty, SM&CR, CASS and safeguarding.
- Dual-regulated firms should engage with the PRA early to confirm the most appropriate operating structure.
- Monitor forthcoming FCA guidance before finalising compliance plans.
🟥 Urgent / significant impact
PS26/12 Crypto Regime A Prudential Regime for Cryptoasset Firms
FCA finalises the UK prudential rulebook for cryptoasset firms (COREPRU and CRYPTOPRU), setting capital, liquidity and risk-management standards
PS26/12 sets out the FCA’s final prudential framework for FCA solo-regulated cryptoasset firms. The new COREPRU and CRYPTOPRU sourcebooks establish requirements covering own funds, liquidity, concentration risk, overall risk assessment and public disclosures, including provisions for stablecoin issuers and cryptoasset custodians.
The FCA has broadly confirmed its consultation proposals while making targeted refinements to improve proportionality, including changes to capital requirements, market risk and disclosure obligations. The rules do not apply to PRA-regulated banks, insurers or PRA-designated investment firms.
Key dates
- September 2026 (expected): Further FCA policy statement on the regulatory perimeter
- 30 September 2026 to 28 February 2027: Authorisation gateway
- 25 October 2027: Rules apply
Legal issue/risk
Many in-scope firms may need to increase or restructure capital to meet the new prudential requirements, which could affect authorisation readiness. Firms that are also subject to MIFIDPRU should consider how the two prudential regimes interact.
Next steps/action required
- Confirm whether your firm falls within scope and identify the prudential requirements that apply.
- Carry out an early capital and liquidity gap analysis and assess any wind-down planning implications.
- Prepare prudential information as part of your authorisation application.
- Monitor forthcoming FCA guidance on the regulatory perimeter and prudential framework.
🟥 Urgent / significant impact
PS26/9 Crypto Regime: Admissions & Disclosures and Market Abuse Regime for Cryptoassets
The A&D and MARC require trading platforms to gatekeep admissions via due diligence and disclosure documents and to police insider dealing and market manipulation
PS26/9 sets out the FCA’s final rules for the Admissions & Disclosures (A&D) regime and the Market Abuse Regime for Cryptoassets (MARC). Under the new framework, retail UK qualifying cryptoasset trading platforms (UK QCATPs) become gatekeepers, responsible for carrying out due diligence and ensuring a qualifying cryptoasset disclosure document (QCDD) is published before a qualifying cryptoasset is admitted to trading. MARC also introduces systems and controls requirements to detect and prevent insider dealing, unlawful disclosure and market manipulation, with enhanced obligations for larger platforms.
The FCA has largely confirmed its consultation proposals, while refining areas such as disclosure requirements, digital token identifiers, on-chain monitoring and intermediary notification rules.
Key dates
- September 2026: Deferral consultation (A&D, for in-circulation cryptoassets)
- 30 September 2026 – 28 February 2027: Authorisation gateway open
- 25 October 2027: Regime go-live/rules apply
Legal issue/risk
Although the regime does not take effect until October 2027, firms will need sufficient time to implement disclosure processes, admission controls and market abuse surveillance before go-live. Failure to publish a compliant QCDD or meet MARC obligations could result in firms being unable to admit qualifying cryptoassets or operate compliantly.
Next steps/action required
- Confirm whether your firm is in scope as a UK QCATP, intermediary, issuer or large platform.
- Begin preparing QCDD publication, due diligence and record-keeping processes.
- Develop market abuse surveillance, insider-list governance and disclosure controls.
- Monitor the September 2026 consultation if transitional arrangements may affect your business.
🟥 Urgent / significant impact
PS26/10 Crypto Regime: Stablecoin Issuance
The FCA’s final rules establish the regulatory framework for non-systemic UK-issued qualifying stablecoins, covering issuance, backing assets, redemption, safeguarding and disclosures.
PS26/10 sets out the FCA’s final framework for non-systemic UK-issued qualifying stablecoins. Issuers will need FCA authorisation and must comply with requirements on backing assets, redemption, statutory trust arrangements, custody, reconciliations and disclosures.
The FCA has largely confirmed its consultation proposals, with targeted refinements to improve proportionality. The Backing Asset Composition Requirement has been simplified by removing the forward-looking redemption-forecast component. The FCA has also confirmed statutory trust arrangements, permitted limited intragroup custody with safeguards, allowed a 5% backing-pool excess, and reduced the issuer capital requirement to 1% of issued value.
Systemic stablecoin issuers will face a separate and more stringent joint FCA-Bank of England regime.
Key dates
- 30 September 2026: Consultation deadline for the FCA/Bank of England approach to joint regulation of systemic stablecoin issuers
- 30 September 2026 to 28 February 2027: Authorisation gateway
- 25 October 2027: Rules apply
Legal issue/risk
Issuing a UK-qualifying stablecoin will be a regulated activity, so firms must obtain FCA authorisation. Existing AML or MLR registrations will not convert automatically. Firms will also face an ongoing compliance burden, including backing-asset requirements, CASS 16 custody and segregation, statutory trust arrangements, redemption rights, stablecoin QCDD disclosures and record retention.
Issuers that could become systemic should also plan for a potential step-up into the joint FCA-Bank of England regime, with materially different requirements on backing assets, redemption, capital and operational arrangements.
Next steps/action required
- Map current or planned stablecoin activity against the final rules and prepare for the authorisation gateway; use the FCA's pre-application support (PASS) service
- Assess backing-pool strategy, redemption arrangements and the 1% capital requirement.
- Build stablecoin QCDD, quarterly disclosure, custody, reconciliation and record-keeping processes.
- Track the BoE/FCA joint-regulation consultation (closes 30 September 2026) if systemic recognition is plausible
🟧 Important, uncertain timing/impact
Bank of England & FCA: Approach to Joint Regulation of Systemic Stablecoin Issuers
The Bank of England and FCA have outlined how UK-issued stablecoin issuers will transition from FCA-only supervision to joint regulation once recognised by HM Treasury as systemic.
The approach document explains how responsibilities will be shared between the FCA and the Bank of England, with the FCA retaining responsibility for conduct and consumer protection, while the Bank oversees prudential and financial stability matters. It also explains how firms transition into the joint regime, the introduction of the “systemic at launch” category, and how the two regulatory frameworks will interact.
Recognition as systemic will be determined by HM Treasury on a case-by-case basis. Firms recognised as systemic will be subject to significantly more demanding prudential and operational requirements than FCA-only issuers.
Key dates
- 22 September 2026: Consultation on the Bank’s draft Code of Practice closes
- 30 September 2026: Consultation on the joint regulatory approach closes
- End-2026: Bank intends to finalise the Code of Practice
- 25 October 2027: FCA stablecoin authorisation regime takes effect
- 2027: Further supervisory guidance and supporting materials expected
Potential impact
Firms that become systemic will face a significant increase in prudential, operational and supervisory requirements, including dual oversight by the Bank and FCA. As the regime and Code of Practice are not yet finalised, firms should expect further refinement before implementation.
Next steps/action required
- Assess whether your stablecoin activities could plausibly become systemic and model the implications of transitioning to the joint regime.
- Consider responding to the consultations, particularly on transition arrangements and business-model impacts.
- Prepare for coordinated supervision across the Bank, FCA and, where relevant, the PRA and PSR.
- Monitor finalisation of the Code of Practice and further guidance during 2027.
🟧 Important, uncertain timing/impact
Sterling-denominated systemic stablecoins: policy statement and consultation on draft Code of Practice
The Bank of England has published revised draft rules for systemic sterling stablecoins, together with a consultation on the Code of Practice that will govern prudential and operational requirements.
The policy statement responds to the Bank's November 2025 consultation, and confirms a more proportionate approach to the proposed regime. Changes include greater flexibility for backing assets, removal of proposed per-coin holding caps, and revised arrangements for firms expected to become systemic. Systemic stablecoin issuers will be jointly regulated by the Bank of England and the FCA, while non-systemic issuers remain under FCA supervision.
Key dates
- 22 September 2026: Consultation on the draft Code of Practice closes
- End-2026: Bank intends to finalise the Code of Practice
- 2027: Further guidance and supporting materials expected
- 2027: Regulated systemic stablecoins expected to begin operating in the UK
Potential impact
The proposals apply only to firms recognised by HM Treasury as systemic, but firms expecting to scale should assess the impact of the more demanding prudential, capital, liquidity and safeguarding requirements. As the Code of Practice is still in draft form, firms should expect further refinement before implementation.
Next steps/action required
- You can respond to the consultation questions (Section 3.2 here) using the web form or via email at: CP-systemicstablecoin@bankofengland.co.uk You can also respond via post at: FMID Payments Policy Team, Bank of England, 20 Moorgate, London, EC2R 6DA
- Assess whether your stablecoin activities could become systemic and model the impact of the proposed prudential requirements.
- Review the draft Code of Practice against your operating model, including backing assets, redemption, safeguarding and capital arrangements.
- Monitor publication of the final Code and related FCA guidance.