United Kingdom FCA Regulated Cryptoasset Activities Regime

S.I. 2026/102 creates regulated activities for operating a qualifying cryptoasset trading platform, dealing in qualifying cryptoassets as principal or agent, arranging deals and arranging qualifying cryptoasset staking. The dealing and arranging categories are intended to capture relevant lending and borrowing models. From full commencement, a person carrying on an in-scope activity by way of business generally must hold the appropriate FCA permission unless an exclusion, exemption or transition applies.

The territorial provisions reach some overseas businesses serving UK consumers. Platforms, dealers, agents and arrangers may require UK authorisation when involved in sales or subscriptions to or by a UK consumer, subject to exceptions. Staking has related UK-location and UK-consumer tests. Classification ultimately depends on the legislation and final FCA perimeter guidance.

CP25/40 proposes rules for platform access, orderly trading, rulebooks, market-maker arrangements, conflicts, algorithmic trading controls, pre- and post-trade transparency, settlement and reporting. Retail access would generally be limited to qualifying cryptoassets admitted to a UK-authorised platform with a qualifying cryptoasset disclosure document available.

For dealers and arrangers, the FCA proposes best-execution and order-handling standards, conflicts controls, records, client reporting and timely settlement. Retail and elective-professional orders would generally be executed on UK-authorised venues. The proposals would restrict payment for order flow and require functional separation between proprietary trading and client execution in specified circumstances. These remain consultation proposals.

The FCA proposes retail access to cryptoasset lending and borrowing subject to safeguards. Firms would provide service information and key terms and obtain express consent. Proposed borrowing protections include over-collateralisation, modelling of loan-to-value, margin and liquidation levels, limits on automatic collateral top-ups and negative-balance protection. CP25/40 also proposes barring firms’ proprietary tokens from use as loaned assets, collateral, yield or inducements.

Staking firms would give retail clients information about fees, rewards, access, unstaking restrictions, ownership effects and material risks, including validator reliance and slashing. Firms would obtain prior consent to key terms and maintain records of staked amounts, rewards, charges, consent, return requests and losses. Some models may also require safeguarding or dealing permissions.

The proposals apply activity-specific rules to DeFi where an identifiable controlling person carries on a regulated cryptoasset activity. Truly decentralised activity, with no person carrying it on by way of business, is intended to remain outside the perimeter. The FCA plans separate guidance on control and decentralisation.

The FCA expects policy statements for the principal cryptoasset consultations during summer 2026. Its authorisation period is scheduled for 30 September 2026 through 28 February 2027, followed by full commencement on 25 October 2027. Saving and transitional provisions may protect timely applicants while decisions remain pending or allow limited management of pre-existing contracts.

HM Treasury published a draft amendment on 21 April 2026 that could change parts of the dealing, arranging and safeguarding perimeter, especially for payments using UK-issued qualifying stablecoins. It was not law as of 19 June 2026, so the final instrument and FCA policy statements should be rechecked before CP25/40 details are treated as settled.