The Financial Conduct Authority has published final rules for the UK cryptoasset regime, setting conduct, prudential and market standards for firms that support the buying, trading and custody of cryptoassets. The framework requires firms to meet financial resilience standards, including capital and stress testing, and introduces market integrity rules aimed at insider trading and market manipulation. It also creates a dedicated regime for stablecoins with specific standards intended to govern how they are issued and used. The regime applies to crypto firms including trading platforms, intermediaries, custodians, stablecoin issuers and firms arranging staking, all of which will need FCA authorisation to operate in the UK. Following consultation, the FCA said it had simplified parts of the framework, including capital requirements for stablecoin firms, and tailored trading rules to better reflect crypto market structure. The package draws on established financial services standards where risks are comparable, including the Consumer Duty. In a related statement, the FCA and the Bank of England set out how they will regulate systemic stablecoin issuers, including how supervisory responsibilities will be divided and how an issuer would move from FCA supervision to joint regulation once HM Treasury recognises it as systemic. Pre-application support meetings will be available from July, and firms can apply for authorisation from 30 September 2026 to 28 February 2027. The new mandatory regime will take effect on 25 October 2027. The FCA also said it will publish a further policy statement in September 2026 on the regulatory perimeter for cryptoasset activities and consult later in the year on decentralised finance guidance, operational resilience guidance for firms using distributed ledger technology, updates to the Financial Crime Guide, and the treatment of stablecoin issuers that become systemic.

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