The UK's Financial Conduct Authority (FCA) has published its crypto regulatory framework, requiring firms to obtain authorization by February 2027. The new rules include mandatory licensing and improv
On June 29, 2026, the United Kingdom’s financial regulator, the Financial Conduct Authority (FCA), finalized a comprehensive set of crypto regulatory guidelines aimed at bringing digital assets under its purview by February 28, 2027. This move follows months of consultation and marks an important step in regulating cryptocurrencies within the UK's financial ecosystem.
The new framework includes mandatory licensing for all cryptocurrency firms operating in the country, including trading platforms, custodians, stablecoin issuers, staking companies, and other intermediaries. It also introduces capital stress-testing requirements, enhanced rules against market manipulation and insider trading, as well as simplified standards for stablecoin issuers.
According to David Geale, Executive Director of Payments and Digital Finance at the FCA, these new regulations will ensure that crypto firms are held to similar standards as other financial service providers in the UK. '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,' he stated.
The FCA has also simplified some aspects of its stablecoin regulations by removing requirements for estimated redemption forecasts while adding statutory trust over reserves. These changes aim to provide clearer guidelines for issuers regarding specific withdrawal rights, excess reserve holdings, and intragroup custody practices.
Traders should note that crypto firms with existing authorization under money laundering regulations will need to obtain new FCA licenses. Certain companies may continue certain activities during a limited transition period as they seek full authorisation under the framework’s transitional 'savings provisions.'
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.