Firms supporting people to buy, trade and hold crypto will need to meet clear standards under landmark rules set out by the Financial Conduct Authority (FCA) today.
According to the regulator, all firms must meet financial resilience requirements including capital and stress testing. The FCA is also introducing new market integrity rules covering areas such as insider trading and market manipulation.
The new framework also sets out specific rules for stablecoins, a type of cryptoasset designed to maintain a stable value, typically by being linked to a currency such as the pound. Stablecoins will be subject to clear, strong and transparent standards, helping to build trust in how they are used over time.
Following consultation, the FCA has simplified key elements of the regime to make it more workable in practice including simpler capital requirements for stablecoin firms and tailoring trading rules to better reflect how crypto markets operate.
The FCA drew upon international best practice, applying established financial services standards where risks are comparable, including the Consumer Duty.
David Geale, executive director of payments and digital finance at the FCA said:
“This is a significant moment for crypto regulation in the UK. We’ve created a framework that doesn’t force firms to choose between regulatory certainty and room to innovate – this regime means they can have both in a stable, competitive home to build and grow. For consumers, it means firms will be held to similar standards to other financial providers, though we can’t regulate away risk.”
Legislation in February 2026 brought cryptoassets into the FCA’s remit, marking one of the most significant expansions of the regulator’s oversight in years. Until the new rules come into effect in October 2027, the FCA’s oversight of crypto will continue to be limited to financial promotions and anti-money laundering controls.
Crypto firms, including trading platforms, intermediaries, custodians, stablecoin issuers, and firms arranging staking must obtain FCA authorisation to operate in the UK.
The FCA is encouraging firms to prepare now and make use of its pre-application support meetings available from July. Firms can apply for authorisation between 30 September 2026 and 28 February 2027, so they are ready to start or continue to trade under the new mandatory regime which will come into force on 25 October 2027.
Crypto remains high-risk and consumers should understand what protections apply before investing. The new rules set by the FCA provide the foundation for a more sustainable and trusted crypto market in the UK.
Michael McCormick, financial services managing consultant at RSM UK, comments:
“The FCA has held the line on the core regulatory framework but made sensible concessions where the consultation risked being too rigid. The final rules are still demanding, particularly on safeguarding, disclosures, market abuse and Consumer Duty, but they are more operationally realistic. For crypto firms, this is no longer a question of watching the regime develop, the authorisation race has effectively started.
“The comparison with MiCA (Markets in Crypto-Assets Regulation) is important. Europe has moved first and given firms a live, harmonised framework. The UK has moved later, but the FCA appears to have used that time to refine the regime in a way that better reflects how crypto markets actually operate. The UK will not win by being less rigorous than MiCA; it will win only if it can be more proportionate, more predictable and faster to supervise.”
Jill Lorimer, Partner and Head of Financial Services at law firm Kingsley Napley says:
“This is a comprehensive framework which will – broadly – be welcomed by the industry. It is the culmination of an extensive period of consultation with the crypto sector and engagement with international bodies. It is good to see that the FCA has responded positively to industry concerns and made adjustments to reflect these. There is no doubt that the new regime will be strengthened as a result of this collaborative approach.
“Firms looking to apply for authorisation under the new regime when the window opens in September will have a busy summer digesting what is a vast volume of new rules and guidance. It is perhaps surprising how many brand new sections of the FCA’s Handbook have been created rather than adapting current sections. Firms already authorised and familiar with the existing Handbook will have a lot of new material to get their heads around.
“The commercial opportunities for UK firms within this space are however immense. The finalisation of the regime will allow UK crypto firms to move forward with confidence and it will be of interest to overseas firms weighing up the option of a UK presence.
According to Lorimer, notable features include the following:
- A new market abuse regime applicable to crypto asset firms. The FCA’s clarification of certain disclosure and notification requirements will be welcomed by firms, as will additional guidance on inside information and what will be considered “legitimate market practice”.
- There is also updated guidance on the FCA’s expectations of firms as to best execution and how this is to be monitored.
- Firms safeguarding qualifying cryptoassets will be subject to a new and dedicated set of client asset rules in recognition of the specific risks presented by the sector.
- For stablecoin issuers, a comprehensive suite of new rules and guidance is being introduced. Issuers will welcome the simplification of aspects of the backing asset requirements while strengthening the requirements to notify withdrawal rights will be welcomed by prospective token holders.
- Decentralised finance (DeFi) will remain outside the FCA’s perimeter except to the extent there is an “identifiable controlling entity” – which will, by definition, be rare.”
Zumo’s Founder and CEO Nick Jones said:
“This is the culmination of an extensive series of consultations that have enabled the industry to help shape the incoming regulatory regime to ensure it’s fit for purpose – and the FCA deserves a lot of credit for adopting such a collaborative approach. This sense of collaboration is set to continue over the summer, with the regulator encouraging firms to take advantage of its pre-application support meetings in July before it opens its authorisation gateway on 30th September.”
“Regulation must be proportionate if the UK is to compete on the international stage, and it’s therefore important that the FCA has reduced its planned capital requirements for stablecoin issuers and lifted its blanket disclosure rule, removing the requirement for smaller companies and firms with less risky activities to publicly disclose their capital requirements. Such moves show the regulator has listened and taken the time to address valid industry concerns.”
“However, firms will soon be regulated to the same stringent standards as UK financial services and will rightly be expected to show the same behaviours.”
“They will need to meet rigorous benchmarks for backing assets, safeguarding, redemption, and operational resilience, as well as effectively manage AML/KYC, liquidity, reconciliation, and third-party dependencies. They will also have to conduct annual stress tests, proving they can withstand major market shocks and economic strain.”
“It’s an exciting time for the crypto industry in the UK, but also the end of an era: of offshore provision, of start-up stye business processes, and of unregulated business models. It will now be about structured access via compliant infrastructure that can accommodate these new levels of operating obligations. At Zumo, we’re focused on providing that infrastructure to help firms operate responsibly, and with confidence, as they explore the UK market.”
