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The UK’s Financial Conduct Authority has published its final crypto regulatory framework, giving firms a firm deadline and clearer rules for operating legally in Britain. This coming on the back of extensive consultations dating back to April 2026.
The UK's FCA just finalized its full crypto rulebook.
Every exchange, custodian, and stablecoin issuer needs full authorization to operate.
Stablecoin capital floor cut from 2% to 1% after industry pushback.
Applications close February 28, 2027. Regime goes live October 25.… pic.twitter.com/iTSOeSFslS
— Kyle Chassé 🐸 (@Kylechasse) June 30, 2026
Until the new rules come into effect on October 25, 2027, the FCA’s oversight of crypto will continue to be limited to financial promotions and anti-money laundering controls. The application window runs from September 30, 2026, to February 28, 2027. Existing AML registrations will not carry over automatically, every firm needs to submit a new application under the updated regime.
Under the new regime, trading platforms must carry out due diligence before listing cryptoassets, establish admission criteria and publish disclosure documents for every cryptoasset admitted to trading.
Furthermore, all regulated firms must meet prudential requirements. This includes minimum capital buffers and annual stress tests. Notably, the stress testing model is firm-designed rather than regulator-imposed. That means crypto firms get to build their own models based on internal risk assessments and submit results to the FCA each year for review.
Retail customers will gain access to the Financial Ombudsman Service for the first time, and all crypto firms will fall under the FCA’s Consumer Duty. Both provisions bring crypto in line with standards already applied to banks and investment firms.
The FCA has reduced the capital requirement for stablecoin issuers from 2% to 1% of the total value of tokens in circulation, responding to concerns from the industry. This change aims to keep the UK competitive with the EU’s MiCA framework and the evolving US rules under the GENIUS Act.
Additional adjustments include removing redemption forecasting requirements, allowing up to 5% excess reserves, and permitting limited intragroup custody arrangements with proper safeguards.
🚨 JUST IN: @TheFCA just set a date for GBP sterling stablecoins. Applications open 30 September.
If you've wanted to issue a GBP stablecoin in the UK, you've been waiting on two things: final rules and a timeline. Both landed today.
Most of the firms that want to do this…
— Simon Taylor (@sytaylor) June 30, 2026
Stablecoins will face a dual-track oversight model. Sterling-backed stablecoins fall under FCA supervision while larger, systemically important stablecoins may be overseen by the Bank of England under a separate designation process.
The new rules come as major financial centres race to capture crypto activity. The EU’s MiCA regime is already operational, Japan has approved its first yen stablecoin and the US is implementing the GENIUS Act. The UK is positioning itself in the mix with a framework that looks to strike a balance between strong oversight and room for innovation.
The Bank of England has made some welcome improvements to its stablecoin framework, but the overall policy still appears designed to ensure that UK-based stablecoin issuers cannot succeed. Here's why:
Scrapping the proposed £20,000 cap on individual stablecoin holdings was an…
— Stani (@StaniKulechov) June 22, 2026
However, according to Stanni Kulechov, the 30% non-yielding reserve requirement at the central bank remains a notable cost burden for issuers. With competing jurisdictions offering more flexible terms, this provision could still influence where companies decide to establish operations.
The feedback period closing in September will be the last major opportunity for the industry to shape the final details before the framework locks in later this year.
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