Overview
- The FCA published perimeter guidance on Sept. 16 that sets out which crypto activities need authorization, including issuing qualifying stablecoins, running trading platforms, dealing and arranging transactions, safeguarding assets, and arranging staking.
- The application portal opens on Sept. 30 and firms that apply by Feb. 28, 2027 can rely on statutory transitional provisions that let them continue specified services while the FCA assesses their applications.
- Existing FCA registrations and other permissions will not automatically convert into the new regime, so firms must apply or vary permissions even if they already hold AML or other UK approvals.
- The rules treat overseas firms that deal with, arrange for, or safeguard cryptoassets for UK retail customers as carrying on business in Britain, so US and other international licenses do not replace the need for FCA authorization.
- The FCA will consult in October on issues such as stablecoins, market making, proprietary trading, technology providers and decentralized protocols, and the Bank of England will publish a tokenization roadmap later this year to guide wholesale-market change.