Firms operating in the crypto market will need to meet clear standards under landmark rules set out by the Financial Conduct Authority.
The new rules will increase supervision in the sector, which has come under scrutiny for its lack of oversight.
David Geale, executive director of payments and digital finance at the FCA, 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.”
Geale said that for consumers, the new regulation means firms will be held to similar standards to other financial providers.
Under the rules, firms supporting people to buy, trade and hold crypto must meet financial resilience requirements including capital and stress testing. The FCA is also introducing new market integrity rules covering areas such as insider trading and market manipulation.
In addition, the new framework sets out specific rules for stablecoins, a type of cryptoasset designed to maintain a stable value, typically by being linked to a currency such as the pound. Stablecoins will be subject to clear, strong and transparent standards, helping to build trust in how they are used over time.
The regulator said that following consultation, it has simplified key elements of the regime to make it more workable in practice, including simpler capital requirements for stablecoin firms and tailoring trading rules to better reflect how crypto markets operate.
Crypto firms, including trading platforms, intermediaries, custodians, stablecoin issuers, and firms arranging staking must obtain FCA authorisation to operate in the UK.
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.
Rhiannon Butterfield, director, digital money and payments at UK Finance, said: “We welcome the FCA’s final Crypto Roadmap rules, which will provide clarity and help strengthen confidence in the UK market. UK Finance supports a balanced approach that encourages innovation and protects consumers while regulating risks.
“We look forward to working with the FCA in the coming months as it considers how stablecoin payments will connect with the wider Modernising Payments Regulations programme.”
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