Crypto firms in the UK face stricter FCA rules

Firms supporting people to buy, trade and hold crypto will need to meet new standards under landmark rules set out by the Financial Conduct Authority (FCA).  

All firms must now meet financial resilience requirements including capital and stress testing. The FCA is also introducing new market integrity rules covering areas such as insider trading and market manipulation.  

The new framework sets out specific rules for stablecoins, a type of crypto asset designed to maintain a stable value, typically by being linked to a currency such as the pound. Stablecoins will be subject to clear, strong and transparent standards, helping to build trust in how they are used over time.  

Following consultation, the FCA has simplified key elements of the regime to make it more workable in practice, including simpler capital requirements for stablecoin firms and tailoring trading rules to better reflect how crypto markets operate. 

The FCA drew upon international best practice, applying established financial services standards where risks are comparable, including the Consumer Duty.  

“This is a significant moment for crypto regulation in the UK,” says David Geale, executive director of payments and digital finance at the FCA. 

“We’ve created a framework that doesn’t force firms to choose between regulatory certainty and room to innovate – this regime means they can have both in a stable, competitive home to build and grow. For consumers, it means firms will be held to similar standards to other financial providers, though we can’t regulate away risk.” 

Legislation in February 2026 brought crypto assets into the FCA’s remit. 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. 

Crypto firms, including trading platforms, intermediaries, custodians, stablecoin issuers and firms arranging staking, must obtain FCA authorisation to operate in the UK. 

“It’s encouraging to see the Financial Conduct Authority’s updated rules for cryptoassets and stablecoins, and that the regulator has actively listened to our members’ feedback, introducing much-needed adjustments that replace rigid complexity with commercial workability,” says Renuka Rawlins, director of policy and government relations at The Payments Association.

“By choosing flexibility and innovation alongside consumer protection, the FCA has ensured that firms do not have to choose between regulatory certainty and the freedom to scale. This balanced regime lays a strong baseline for the future evolution of payment stablecoins, helping to firmly cement the UK as a competitive, global hub for digital assets.”