The Financial Conduct Authority has set out its long‑awaited crypto regulatory framework, confirming the standards firms must meet to operate in the UK once the new regime comes into force in October 2027.
Under the rules, firms supporting people to buy, trade and hold crypto will need to meet financial resilience requirements, including capital and stress‑testing obligations. The FCA is also introducing market‑integrity standards covering insider trading and market manipulation, bringing crypto markets closer to the expectations applied across traditional finance.
The framework includes dedicated provisions for stablecoins, which will be subject to “clear, strong and transparent standards” to help build trust in how they are used over time. Following consultation, the FCA has simplified elements of the regime — including simpler capital requirements for stablecoin firms and tailored trading rules designed to reflect how crypto markets operate in practice.
David Geale, executive director of payments and digital finance at the FCA, said this marked “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,” he said. “For consumers, it means firms will be held to similar standards to other financial providers, though we can’t regulate away risk.”
Legislation passed in February 2026 brought cryptoassets formally into the FCA’s remit, marking one of the regulator’s largest perimeter expansions in years. Until the new rules take effect, oversight will remain limited to financial promotions and anti‑money‑laundering controls.
Crypto firms — including trading platforms, intermediaries, custodians, stablecoin issuers and staking providers — must obtain FCA authorisation to operate in the UK. The authorisation gateway opens on 30 September 2026, with firms able to apply until 28 February 2027. Pre‑application support meetings will be available from July.
Industry groups broadly welcomed the clarity. UK Finance said the rules “will provide clarity and help strengthen confidence in the UK market”, while CryptoUK praised the FCA’s “collaborative and inclusive approach”. The Global Blockchain Business Council added: “Standards are what make markets work… essential to the UK’s strength as a global financial hub.”
The FCA will publish further policy material in September and consult later this year on DeFi guidance, operational‑resilience expectations for DLT‑based firms and updates to its Financial Crime Guide.
So far, in 2026, Bitcoin has fallen sharply from last year’s highs, and the wider market has followed. BTC is down around 44% year‑on‑year, with Ethereum off roughly 34%, Litecoin down about 49%, and Cardano sliding more than 70%, reflecting a broad retreat across major tokens as ETF outflows, macro uncertainty and network‑specific issues weighed on sentiment.
