The UK crypto regime: final rules are out, go-live is 25 October 2027

The law is made, the FCA's rulebook is final and the application window is open. What is in scope, the key dates, and what finance teams should prepare.

2026-10-17 · 6 min read

If your business deals in, holds or stakes crypto for customers in the UK, or issues a sterling stablecoin, it will need FCA authorisation from 25 October 2027. If you only use UK firms for these services, expect your providers' custody terms, disclosures and reporting to change over the next year.

Where things stand in October 2026

The legal basis is the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026, statutory instrument 2026 No. 102, made on 4 February 2026 [1]. Most of it takes effect on 25 October 2027, but some parts commenced earlier so the FCA could make rules and process applications [1].

On 30 June 2026 the FCA published its final rules in a package of policy statements, numbered PS26/9 to PS26/13 [2][3]. Its authorisation gateway opened on 30 September 2026 and the transitional window closes on 28 February 2027 [4]. Some work is still outstanding: the FCA said it would consult on guidance for decentralised finance later in 2026 [2].

What becomes regulated

The Regulations create seven new regulated activities [1]:

• Issuing a qualifying stablecoin in the UK.
• Safeguarding cryptoassets for others (custody).
• Operating a cryptoasset trading platform.
• Dealing in cryptoassets as principal.
• Dealing in cryptoassets as agent.
• Arranging deals in cryptoassets.
• Arranging qualifying cryptoasset staking.

A qualifying stablecoin is, in short, a fungible and transferable cryptoasset that aims to hold a stable value against a fiat currency and is supported by backing assets [1]. The Regulations also bring in a market abuse regime covering insider dealing, unlawful disclosure of inside information and market manipulation for cryptoassets admitted to trading platforms [1].

What the final rules say

Admissions, disclosures and market abuse (PS26/9). Trading platforms take on rules for admitting tokens and policing abuse. These include a digital token identifier standard and a narrower set of on-chain monitoring duties for large operators [3].

Stablecoin issuance (PS26/10). Backing assets must be held on statutory trust for holders. The final rules permit up to a 5% excess in the backing pool and limited custody within the issuer's group, subject to safeguards [3]. The FCA said it had adjusted redemption timelines so they work in practice [3]; check the policy statement itself for the exact deadlines. Alongside the rules, the FCA and the Bank of England published a joint statement on supervising systemic stablecoins [2].

Custody, lending and staking (PS26/11). A new client-asset chapter, CASS 17, covers ownership of client cryptoassets, record-keeping, reconciliation and private key management [3]. Retail lending and borrowing keep enhanced disclosure, consent and appropriateness tests [3]. Staking firms face stronger disclosure and consent rules, may run auto-staking with ongoing consent, and must send customers an annual notification [3].

Prudential (PS26/12). Capital rules for crypto firms include a lower capital coefficient for stablecoin issuance than first proposed, and a simpler market-risk framework for firms' own crypto positions [3].

Handbook application (PS26/13). The FCA's core rulebook applies to these firms, including the Consumer Duty, conduct of business rules, the Senior Managers and Certification Regime, operational resilience and financial crime rules [3].

The transition

Firms that apply within the window and have not received a decision by commencement can keep operating, including taking on new business, while the FCA assesses them [4][2]. Firms that do not apply must run off their UK cryptoasset business before the regime starts, and carrying on regulated activity without permission after that risks breaching the general prohibition in section 19 of FSMA [4]. Registration under the money-laundering rules and the financial promotion rules that have applied since October 2023 do not replace the new authorisation [5].

Why finance teams should care

These are conduct and prudential rules, not accounting standards. They do not change how UK companies measure crypto under IFRS or UK GAAP. They do change the evidence around your balances. A UK custodian working under CASS 17 will have to keep records and run reconciliations on client cryptoassets [3], which gives your auditors a firmer basis for confirming what is held for you and on what terms. Stablecoin backing held on statutory trust [3] is relevant when you assess the credit risk on a sterling stablecoin you hold. A provider that fails to get authorised will have to wind down its UK service [4], which could force you to move assets at short notice.

What to do

• List every UK provider you rely on for custody, trading, staking or lending, and ask whether and when it applied through the FCA gateway.
• If your own business carries on any of the seven activities in the UK, plan to apply before 28 February 2027 so you can use the transitional protection.
• Review custody agreements now for how client assets are held and segregated, and plan to update them once providers move onto CASS 17 terms.
• For any sterling stablecoin you hold or plan to accept, record the issuer's regulatory status and where its backing-asset disclosures are published.
• Keep a contingency plan for moving assets off a provider that does not become authorised by October 2027.
• Watch for the FCA's DeFi guidance due later in 2026, which may affect protocol-based activity.

Sources

1. The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (SI 2026/102) (legislation.gov.uk)
2. FCA sets landmark crypto rules to cement the UK's place as a global hub (Financial Conduct Authority)
3. Overview of our cryptoassets regime policy statements (Financial Conduct Authority)
4. Cryptoassets: How the gateway will operate (Financial Conduct Authority)
5. Cryptoassets (Financial Conduct Authority)

General information for finance teams, current as of publication. Not legal, tax or accounting advice.

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