UK sets final crypto rules as firms face 2027 FCA authorization deadline
The UK Financial Conduct Authority has finalized its crypto regulatory regime, completing its roadmap to bring digital assets under FCA supervision. The framework requires crypto firms, including exchanges, custodians, stablecoin issuers, staking providers, and intermediaries, to obtain FCA authorization to operate in the UK. Existing AML-registered firms will not be grandfathered in and must apply for new approval, though transitional “savings provisions” will allow limited continued activity during the process. The regime introduces mandatory licensing, capital stress-testing, stronger rules on market abuse and insider trading, and simplified capital standards for stablecoin issuers. Stablecoin rules were refined to require statutory trust over reserves, specific withdrawal rights, and limited excess backing assets. The application window opens in September and runs until Feb. 28, 2027, with the regime taking effect on Oct. 25, 2027. The FCA will also issue further guidance on DeFi, operational resilience for DLT firms, and crypto financial crime controls later this year.
