UK Builds Two-Pillar Crypto Oversight: FCA Perimeter Rules Take Shape As Bank Of England Gains Digital Money Mandate
The UK Financial Conduct Authority (FCA) has published final guidance setting out the regulatory perimeter for cryptoassets, clarifying which activities will require authorisation under the country’s forthcoming crypto regime.
The framework, established by the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026, will come into force on 25 October 2027, but businesses can begin submitting authorisation applications from 30 September 2026.
The guidance, published as Policy Statement PS26/18, explains how the new statutory provisions apply to a range of business models. It covers issuing qualifying stablecoins, operating qualifying cryptoasset trading platforms, dealing in and arranging deals in qualifying cryptoassets, safeguarding cryptoassets, and arranging cryptoasset staking. It also addresses the classification of cryptoassets themselves, distinguishing between qualifying cryptoassets, qualifying stablecoins and specified investment cryptoassets — categories that determine which permissions a firm must hold.
The publication follows the FCA’s finalisation of the core rules for the new regime in June 2026. Existing registrations — including those under the Money Laundering Regulations, payment services and electronic money frameworks — will not convert automatically into FSMA permissions, meaning affected firms will need to assess their activities and apply for the appropriate authorisations. To assist businesses during the transition, the regulator has launched a series of webinars and opened registration for preliminary consultations ahead of application submissions.
Limited legislative amendments will not derail preparations
The UK government has introduced targeted amendments to the cryptoasset legislation, including limited exclusions for certain technology service providers and further clarity for some technical services. The FCA has indicated that these changes will not affect the licensing preparations of the majority of crypto firms, which can rely on the newly issued guidance in the meantime. Feedback on the original consultation, which drew 78 responses, led to clarifications on hybrid stablecoins, wrapped tokens, the territorial scope of the regime and decentralised arrangements.
The FCA has signalled that its October consultation will address rules for market makers, decentralised finance protocols, stablecoin issuers and financial promoters. The update comes amid wider institutional developments: in late August, the UK government announced plans to give the Bank of England an expanded mandate to support innovation in payment systems and new forms of digital money, including stablecoins — underscoring the multi-agency architecture of the UK’s emerging crypto framework.
With the authorisation application window scheduled to close on 28 February 2027 for firms wishing to benefit from the savings provisions, the guidance arrives at a critical juncture for the industry. The FCA’s message is clear: firms should assess now whether their activities fall within the perimeter, and those requiring permission should prepare to apply promptly.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
