Big changes coming for crypto apps in the UK
Key Points
- Crypto firms serving UK customers need FCA authorisation from 25 October 2027
- The FCA's application window for transitional arrangements opened on 30 September
- The FCA published final crypto rules in June and perimeter guidance in September
- Issuing stablecoins is now a regulated activity in the UK
- The UK and US are aligning stablecoin rules through the Transatlantic Taskforce
Crypto firms serving UK customers will need FCA authorisation from 25 October. Lucy Rigby, Economic Secretary to the Treasury, confirmed the date on Tuesday (6 October) in her speech opening UK Digital Assets Week in London.
The regulations Rigby took through Parliament in February bring a broad range of cryptoasset activities within the Financial Conduct Authority’s regulatory perimeter. Firms carrying out those activities in the UK will need authorisation from the regulator.
“This year marked an important change in the UK’s approach to cryptoassets. We moved from debating the shape of regulation to implementing it,” said Rigby.
The FCA published its final rules and guidance in June, covering stablecoin issuance, regulated cryptoasset activities and prudential requirements. In September, the regulator followed this with final perimeter guidance setting out where firms will need authorisation.
Rigby said the application window for firms seeking to use the transitional arrangements opened on 30 September.
“Being a leading digital assets centre means having standards as well as ambition,” said Rigby.
Stablecoins get their own rules
The government has also created a regulated activity for issuing stablecoins, which are cryptoassets designed to hold a stable value. Rigby said stablecoins could enable faster and cheaper transactions, more efficient settlement and programmable payments.
The Treasury laid legislation in September making targeted amendments to the cryptoassets regulations after talks with industry. Rigby said the changes give firms providing stablecoin payment services greater certainty and remove barriers to key uses.
The Treasury is also consulting on reforms that would bring UK-issued stablecoins under the payment services rules. The September amendments mean firms will not need cryptoasset permissions now, only to seek reauthorisation once the payments reforms arrive.
The UK is working with the United States through the Transatlantic Taskforce to align stablecoin rules between the two countries.
Rigby added that the government is considering how to use its powers to establish Overseas Recognition Regimes for digital assets.
