UK Crypto Regulation Takes Shape With New Law, FCA Guidance
A draft statutory instrument laid before the UK Parliament and new FCA perimeter guidance clarify the scope of regulated cryptoasset activities, including staking and stablecoins, ahead of a 2027 effective date.
The UK government has laid a draft statutory instrument before Parliament to govern cryptoassets, while the Financial Conduct Authority (FCA) has published corresponding perimeter guidance. The new framework, part of the Financial Services and Markets Act, is set to commence on October 25, 2027, with the firm authorisation window opening in September 2026.
This development is critical for all firms in the digital asset space operating in or providing services to the UK. The publications provide significant clarity on the scope of regulated activities, addressing key industry concerns around territoriality, staking, safeguarding, and stablecoins. The statutory instrument introduces important exclusions, including for certain technical service providers and proprietary trading, to avoid stifling innovation and placing UK firms at a competitive disadvantage. It also clarifies rules for stablecoin backing and nominee-operated safeguarding arrangements.
While the FCA's guidance is based on a previous draft of the law, the agency plans to consult on further amendments in late 2026 to align with the final text. Counsel should advise clients to begin assessing how their operations will be classified under the new perimeter and prepare for the upcoming authorisation process.