UK Crypto Rulebook Cuts Stablecoin Capital Requirement To 1%
The FCA has finalized major UK crypto policy statements and lowered the proposed capital requirement for stablecoin issuers from 2% to 1%, aiming for a more proportionate but still robust framework. This signals that the UK is building a supervised crypto market rather than taking a light-touch approach. The wider regime is expected to begin in October 2027 and will require FCA authorisation for trading platforms, custodians, intermediaries, stablecoin issuers, and staking arrangers. Until then, oversight remains limited mainly to financial promotions and anti-money laundering rules. The 1% cut matters because capital requirements shape market entry: too high can push firms offshore, while too low can weaken protections. The change suggests the FCA responded to industry concerns and may make the UK more workable for compliant stablecoin models, especially sterling-backed ones.
