FCA launches consultation on UK crypto regulation

The FCA is consulting on UK crypto rules, covering stablecoins, trading, custody, and staking. The new regime starts October 2027, with applications open from September 2026.

The UK’s Financial Conduct Authority (FCA) has initiated a public consultation on a comprehensive crypto regulatory framework, set to take effect on October 25, 2027. The proposed rules cover key activities such as stablecoin issuance, trading platform operations, custody services, staking, and arrangements involving qualifying cryptoassets. The FCA aims to provide operational clarity and transparency, supporting an open, sustainable, and competitive crypto market. Industry participants are invited to submit feedback on the draft guidance until June 3, 2026. Firms can apply for authorization under the new regime starting September 2026, but current registrations will not transfer automatically. This initiative marks a significant step toward formal oversight of crypto activities in the UK, with the goal of enhancing consumer protection and market reliability. Until the new regulations are in force, crypto remains largely unregulated except for financial promotions and crime prevention measures.