With the U.K.’s new regulatory regime for the crypto sector set to launch next year, the Financial Conduct Authority (FCA) is consulting on proposed guidance for setting the regulatory perimeter — determining who will need to be registered under the new regime.
On Wednesday, the FCA issued a consultation paper that set out its proposed approach to defining various crypto sector activities that will face regulation starting in October 2027 — including operating a crypto trading platform, issuing stablecoins, dealing in certain cryptoassets (both as agent and principal), safeguarding assets and staking.
At the end of September, firms will be able to start applying for regulatory permission to operate under the new regime, so it’s now consulting on guidance for the crypto industry, to help firms understand when they will have to be authorized.
The FCA said the proposed guidance aims to support its objective of enabling an “open, sustainable and competitive crypto market” that investors can trust.
“We want to develop a competitive and sustainable crypto-asset sector where U.K. consumers are served by authorized crypto-asset firms and can make informed decisions,” it said, adding that the new regime will enable it to protect crypto investors and to “support fair, transparent and orderly markets as the sector matures.”
The draft guidance is out for comment until June 3. The FCA plans to issue its final guidance in September.
The rules under the new regime that take effect in 2027 are currently in development, and the FCA said it intends to publish those rules in the summer.