The Financial Conduct Authority has launched a consultation on a proposed prudential regime for firms seeking authorisation to issue qualifying stablecoins and to safeguard qualifying cryptoassets, including qualifying stablecoins. The package proposes new Handbook sourcebooks to set capital, liquidity and risk management expectations for these regulated cryptoasset activities, and is intended to sit alongside the FCA’s parallel proposals on stablecoins and custody. The proposals introduce an integrated prudential structure with COREPRU for cross-sector requirements and CRYPTOPRU for cryptoasset-specific requirements, initially applying only to regulated cryptoasset firms. The FCA proposes an own funds framework aligned to the MIFIDPRU approach, including CET1, Additional Tier 1 and Tier 2 capital with specified deductions, notably for cryptoassets issued by the firm or connected parties, or where the firm controls supply (with an exception for regulated qualifying stablecoins backed in line with requirements). A firm’s own funds requirement would be the higher of a permanent minimum requirement, a fixed overheads requirement (one quarter of prior-year relevant expenditure, with recalculation triggers for material changes), or a K-factor requirement, with proposed minimum capital of GBP 350,000 for qualifying stablecoin issuance and GBP 150,000 for safeguarding. Activity-based requirements include 2% of average qualifying stablecoin in issuance (K-SII) and 0.04% of average qualifying cryptoassets safeguarded (K-QCS), both calculated using a lagged rolling-average method, and with QCS including assets safeguarded via third-party arrangements. Liquidity proposals include a basic liquid assets requirement equal to one third of the fixed overheads requirement plus 1.6% of guarantees to clients, and an additional issuer liquid asset requirement for stablecoin issuers, calibrated via prescribed charges on non-cash backing assets and met with on-demand deposits in the stablecoin reference currency. The consultation also proposes monitoring and control expectations for concentration risk, including exposures in stablecoin backing asset pools. Responses are requested by 31 July 2025. The FCA expects to consult further on remaining elements of the prudential regime, including group requirements, reporting and the ICARA process, and to publish final rules and guidance in Policy Statement(s) ahead of implementation.
Financial Conduct Authority 2025-05-28
Financial Conduct Authority consults on prudential rules for qualifying stablecoin issuers and cryptoasset custodians including GBP 350,000 and GBP 150,000 minimum capital
The Financial Conduct Authority (FCA) has initiated a consultation on a proposed prudential regime for firms issuing qualifying stablecoins and safeguarding qualifying cryptoassets. The regime introduces new Handbook sourcebooks, COREPRU and CRYPTOPRU, setting capital, liquidity, and risk management expectations, with a minimum capital requirement of GBP 350,000 for stablecoin issuance. The FCA plans further consultations on additional elements before finalizing rules and guidance.