The FCA has set out new rules for crypto firms operating in the UK, covering stablecoins, market integrity, and financial resilience.
The rules require firms to meet financial resilience standards, including capital and stress testing requirements, alongside new market integrity provisions addressing insider trading and market manipulation.
The framework includes specific provisions for stablecoins, a category of cryptoasset designed to maintain a stable value, typically by being linked to a currency such as the pound. Under the new rules, stablecoins will be subject to transparency and operational standards intended to build confidence in their use over time. Following a consultation process, the FCA simplified several elements of the regime, including capital requirements for stablecoin firms, and adjusted trading rules to better reflect how crypto markets function in practice. The regulator stated that it drew on international standards and applied established financial services principles, including the Consumer Duty, in areas where risks are comparable to those in traditional finance.
David Geale, executive director of payments and digital finance at the FCA, said the framework was designed to give firms both regulatory certainty and scope to innovate, allowing them to operate from what he described as a stable and competitive base in the UK. Furthermore, Geale added that consumers would benefit from firms being held to standards comparable to other financial providers, while noting that regulation cannot eliminate risk entirely.
Authorisation timeline
Legislation introduced in February 2026 brought cryptoassets within the FCA's regulatory remit, representing one of the more significant extensions of its oversight in recent years. Until the new regime takes effect, the FCA's supervision of the sector remains limited to financial promotions and AML controls. Crypto firms, including trading platforms, intermediaries, custodians, stablecoin issuers, and firms arranging staking, will need FCA authorisation to operate in the UK.
The regulator is encouraging firms to begin preparations ahead of the deadline and is offering pre-application support meetings from July 2026. Authorisation applications will be accepted between 30 September 2026 and 28 February 2027, allowing firms time to prepare before the mandatory regime comes into force on 25 October 2027.
Market implications
The FCA reiterated that crypto remains a high-risk asset class and that consumers should understand the protections that apply before investing. The new framework is intended to provide a basis for a more sustainable and supervised crypto market in the UK, as the regulator extends its oversight to a sector that has so far operated with limited direct supervision.
