By PAUL O’DONOGHUE, Senior Correspondent
THE FCA (Financial Conduct Authority), the UK financial watchdog, has unveiled a “landmark” regulatory framework outlining new rules for crypto firms.
It eased capital and disclosure requirements for crypto companies after complaints from the industry.
Under the updated proposal, stablecoin issuers will need to hold capital equal to 1% of the total value of stablecoins they issue. This is a reduction from the 2% level set out in earlier plans.
David Geale, the FCA’s payments and digital finance executive director, told journalists: “The feedback we got (was) that we’re starting a bit high.”
The regulator also removed certain public disclosure obligations included in previous drafts.
Additionally, crypto companies will conduct their own stress tests. They will base these on their internal risk assessments. This differs from UK banks, which receive specific scenarios from the Bank of England.
The new regulatory regime is scheduled to take effect on 25 October 2027.
New UK crypto rules
The FCA said the rules will help “cement the UK’s place as a global hub” for cryptoassets.
“These publications mark the completion of the FCA’s crypto roadmap,” it said.
Geale said: “This is a significant moment for crypto regulation in the UK.”
“We’ve created a framework that doesn’t force firms to choose between regulatory certainty and room to innovate. This regime means they can have both in a stable, competitive home to build and grow.”
The FCA said legislation introduced in February 2026 brought cryptoassets within its remit. Until the new rules take effect on 25 October 2027, it said its oversight “will continue to be limited to financial promotions and anti-money laundering controls.”
The framework requires trading platforms, intermediaries, custodians, stablecoin issuers and firms arranging staking to obtain FCA authorisation before operating in the UK.
The FCA said: “Firms can apply for authorisation between 30 September 2026 and 28 February 2027, so they are ready to start or continue to trade under the new mandatory regime which will come into force on 25 October 2027.”
The regulator said it will offer pre-application support meetings from July. Those interested can apply [HERE].
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