The UK’s financial regulator has published its long-awaited crypto rulebook, and the clock is ticking. Cryptocurrency firms now have until February 2027 to obtain authorization from the Financial Conduct Authority before the new regime takes effect in October of that year.
The framework brings crypto companies in line with traditional financial services firms. That means mandatory licensing, capital stress-testing, and stricter rules against market manipulation and insider trading. It covers trading platforms, custodians, stablecoin issuers, staking providers, and other intermediaries.
Here’s something that might catch existing firms off guard: companies already authorized under anti-money laundering rules won’t get a free pass. They’ll need to apply for new licenses under the regime. The FCA is offering transitional “savings provisions” that let certain firms keep operating for a limited time while they apply.
Stablecoin rules got a tweak, too. The FCA simplified backing asset requirements, dropped the need for estimated redemption forecasts, and added a requirement for statutory trust over reserves. Issuers must also offer users specific withdrawal rights.
What about DeFi? The regulator plans a separate consultation later this year. Matthew Long, the FCA’s director of payments and digital assets, said “true DeFi” with no identifiable controlling person will fall outside the scope.
Firms can start booking pre-application support meetings next month. The FCA will also host a webinar on July 17 to walk through the policy statements.
