The Financial Conduct Authority has outlined the core cryptoasset activities it will regulate under a new regime scheduled for 2027. The regulator is seeking feedback on seven areas including stablecoin issuance, trading platforms, and staking, with final rules expected this summer. Firms can begin applying for authorization from September 2026, marking a decisive shift from the UK’s current focus on financial promotions and anti-money laundering to a structured regulatory system.
The UK is moving decisively toward full crypto regulation, with the Financial Conduct Authority outlining which activities will fall under its upcoming regime. The FCA announced a consultation on regulated crypto activities, confirming that a full regime will come into force by October 2027, with firms able to apply for authorisation from September 2026.
The consultation sets out how services like trading, custody, stablecoin issuance, and staking will be brought into scope. Yuriy Brisov, Partner at Digital & Analogue Partners, told Decrypt that the FCA has chosen an “activity-based perimeter,” rather than licensing entire firms. “It is drafted around intermediated models: issuers, custodians, venues, staking providers, rather than around protocol-level functions,” he noted.
“My reading is that the perimeter, as currently drafted, deliberately does not yet describe the part of the market most likely to define the next cycle,” Brisov said, noting that firms building non-custodial or composable systems should expect “ongoing classification debates.” The FCA confirmed it will separately consult on DeFi guidance and operational resilience rules for firms using distributed ledger technology later this year.
“The framework largely repurposes the post-2008 toolkit—authorisation, prudential capital, conduct rules, market-abuse surveillance,” Brisov said, adding it “does not yet address the risks that emerge from the technology itself.” On systemic risk, the regime focuses on custody integrity, financial crime, and market abuse, while leaving issues like cross-protocol contagion and offshore spillovers less clearly addressed.
The consultation closes June 3, with final rules expected this summer and additional guidance in the autumn. The process builds on legislative changes passed in February that brought crypto activities within the UK’s regulatory remit. Crypto firms, including overseas operators serving UK users, will need to reassess their structures ahead of the 2026 authorisation window.
