United Kingdom's HM Treasury laid in Parliament the final draft legislation to bring major cryptoasset activities within the Financial Services and Markets Act 2000 regulatory perimeter, creating a UK authorisation framework for cryptoasset firms. The draft Order would establish new regulated activities for cryptoassets, with consequential changes across financial promotions, anti-money laundering rules and related financial services legislation. The legislation would amend the Regulated Activities Order to define “qualifying cryptoassets” and “qualifying stablecoin” and treat them as specified investments, then create a new Chapter 2B of regulated cryptoasset activities including issuing qualifying stablecoin in the United Kingdom, safeguarding (custody) of qualifying cryptoassets and certain tokenised securities, operating a qualifying cryptoasset trading platform, dealing in qualifying cryptoassets as principal or as agent, arranging deals in qualifying cryptoassets, and qualifying cryptoasset staking. It would also amend the UK geographic perimeter for certain activities involving UK consumers, update the Financial Promotion Order to add controlled activities for custody, trading platform operation and staking while removing the temporary ability for Money Laundering Regulations-registered cryptoasset firms to approve their own promotions, and adjust the Money Laundering Regulations so authorised cryptoasset firms no longer need separate AML registration as exchange or custodian wallet providers but must notify the Financial Conduct Authority when they start or stop those activities. Commencement would be staged, with some provisions coming into force ahead of full commencement to allow the Financial Conduct Authority and Prudential Regulation Authority to prepare rules, guidance and directions and to enable firms to apply for permissions. The draft includes a Financial Conduct Authority-led “relevant application period” process ahead of full commencement and transitional and run-off arrangements for firms with refused, withdrawn or undecided applications, which would cease two years after full commencement.
HM Treasury 2025-12-16
United Kingdom's HM Treasury lays Parliament legislation to regulate cryptoasset trading platforms custody staking and stablecoin issuance
HM Treasury introduced final draft legislation to regulate major cryptoasset activities under the Financial Services and Markets Act 2000, establishing a UK authorisation framework for cryptoasset firms. The draft Order defines “qualifying cryptoassets” and “qualifying stablecoin” as specified investments and creates new regulated activities, including issuing stablecoins, custody, and trading. It also updates financial promotions and anti-money laundering rules, with a staged commencement to allow regulatory bodies and firms to prepare.