UK FCA Finalizes Crypto Rules for Trading and Stablecoin Firms

The United Kingdom’s Financial Conduct Authority (FCA) has finalized crypto rules that will require covered firms to obtain authorization starting Oct. 25, 2027, including trading, custody and stablecoin businesses.

The FCA’s authorization window for crypto firms runs from Sept. 30, 2026, through Feb. 28, 2027. Existing anti-money-laundering registrations will not convert automatically, so firms holding them still must apply.

The framework covers crypto trading platforms, custodians, stablecoin issuers, lending and staking providers, and some decentralized finance businesses with identifiable controlling entities. Trading platforms must conduct due diligence, meet admission standards and publish disclosure documents for assets admitted to trading. The rules remove an exemption that had allowed fungible crypto assets to be listed without those documents. Market-abuse provisions cover insider trading and market manipulation.

For stablecoins, the FCA removed a requirement to forecast redemptions from reserve assets and allowed limited custody arrangements within corporate groups. It also reduced the K-SII capital factor for stablecoin issuance to 1% from 2%.

Crypto assets on qualifying platforms will face a 40% net-exposure requirement and a 40% volatility adjustment for counterparty default. David Geale, the FCA’s executive director for payments and digital finance, described the framework as a milestone that gives firms regulatory certainty while preserving room for innovation.

Applications close Feb. 28, 2027, ahead of the Oct. 25 authorization start date.