Changes for Crypto firms announced by FCA
Changes for Crypto firms announced by FCA
In new measures announced by the Financial Conduct Authority (FCA), from Autumn 2027, crypto firms in the UK must meet financial resilience requirements, and market integrity rules covering areas such as insider trading and market manipulation.
‘This is a significant milestone for the FCA, for the industry, and for the millions of consumers who engage with firms providing crypto assets services,’ the FCA stated.
The new framework also sets out specific rules for stablecoins, which are a type of crypto asset designed to maintain a stable value, typically pegged to a currency such as the pound or dollar.
Stablecoins will be now subject to ‘clear, strong and transparent standards,’ which the FCA said would help to build ‘trust in how they are used over time.’
The FCA have stressed: ‘Until the new rules come into effect in October 2027, the FCA’s oversight of crypto will continue to be limited to financial promotions and anti-money laundering controls.’
As of Autumn 2027, crypto firms, including trading platforms, intermediaries, custodians, stablecoin issuers and firms arranging staking must obtain FCA authorisation to operate in the UK.
Firms can apply for authorisation between 30 September 2026 and 28 February 2027, so they are ready to start or continue to trade under the new mandatory regime which will come into force in October 2027.
Highlights of the new regime also include a new market abuse regime applicable to crypto asset firms, which it is believed will be welcomed by firms, as will additional guidance on inside information and what will be considered legitimate market practice.
There has also been updated guidance on the FCA’s expectations of firms as to best execution and how this is to be monitored.
Firms ‘safeguarding’ qualifying crypto assets will be subject to a new and dedicated set of client asset rules in recognition of the specific risks presented by the sector.
For stablecoin issuers, a comprehensive suite of new rules and guidance is being introduced.