The UK Government and Financial Conduct Authority have published their plans for a comprehensive regulatory regime for cryptoasset activities in the United Kingdom. The regime will commence on 25 October 2027, establishing mandatory FCA authorisation requirements for cryptoasset firms.
The FCA has published a series of consultation papers which set out the proposed detailed rules covering the full lifecycle of cryptoasset activities. These include:
- (a) CP25/14 (Stablecoin Issuance and Cryptoasset Custody);
- (b) CP25/40 (Regulating Cryptoasset Activities);
- (c) CP25/41 (Admissions & Disclosures and Market Abuse Regime for Cryptoassets);
- (d) CP25/42 (Prudential Regime for Cryptoassets Part II); and
- (e) CP26/4 (Application of FCA Handbook for Regulated Cryptoasset Activities II).
The consultation papers follow HM Treasury's publication of the final draft statutory instrument setting out the legislative framework underpinning the future UK regime. Together, these create the most significant regulatory development for the UK cryptoasset sector since the introduction of anti-money laundering registration in 2020. From commencement, firms conducting specified cryptoasset activities in or targeting the UK will be required to hold full FSMA Part 4A authorisation from the FCA, or risk committing a criminal offence under section 19 of FSMA. The final rules are expected in Q2 2026 subject to parliamentary approval of the enabling legislation.
Our latest Client Briefing sets out the key considerations for clients emerging from the proposed UK regime. The FCA authorisation application gateway opens in September 2026 and the regime commences on 25 October 2027, providing limited implementation runway particularly accounting for six to twelve month FCA determination periods.
The new UK regime represents a fundamental shift in the regulatory landscape for cryptoassets. The UK is one of the world's largest crypto markets, with a substantial and growing user base. The introduction of a comprehensive regulatory framework will be demanding, but it also presents a significant commercial opportunity for clients. Firms that engage with the process now will be best placed to secure FCA authorisation. It will be equally important for firms not applying for UK authorisation, to determine the regulatory impact on their business model and organise their operations accordingly.
About LawBEAM
LawBEAM is a leading international firm focused on cryptoasset law and regulation. We provide strategic legal advice and solutions to cryptoasset firms in the United Kingdom and worldwide. If you would like to discuss the impact of the new UK regulatory framework on your business, please contact us.
