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Successive administrations in the U.K. have pledged their ambition for the U.K. to become a global crypto hub. With the recent publication by the Financial Conduct Authority (FCA) of the much-anticipated final package of rules for the U.K.'s cryptoassets regime, what has long seemed like a gleam of hope is set to become a reality. Here's what you need to know.
The regime in a nutshell
Described by the FCA as a “significant moment for crypto regulation in the U.K.”, on June 30, 2026, the FCA published a suite of policy documents.
The FCA's regime consists of “core requirements” and “activity-specific requirements.”
Core requirements
All firms that will be undertaking a regulated cryptoasset activity must consider a range of conduct and prudential requirements.
Key cross-cutting FCA Handbook obligations are set out in PS26/13: Applying the FCA Handbook. This policy statement should be read alongside three pieces of finalized guidance:
PS26/12: Prudential Requirements expands on the prudential framework. It sits alongside two consultation papers: GC26/4: Consultation on COREPRU and GC26/5: Consultation on CRYPTOPRU. COREPRU and CRYPTOPRU are the names of two new prudential sourcebooks that the FCA has developed as part of its new crypto regime.
GC26/4 and GC26/5 close for comments on July 30, 2026.
Activity-specific requirements
The FCA groups firms into three categories:
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Stablecoin issuers and custodians (group one).
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Firms providing cryptoasset services, i.e. trading, dealing, custody, staking, or lending and borrowing (group two).
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Firms issuing, admitting, or trading cryptoassets (group three).
Firms in group one should take note of the following:
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PS26/10: Stablecoin Issuance, which covers rules relating to backing assets and safeguarding, redemption requirements, and disclosures to holders.
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The joint publication with the Bank of England (Bank) relating to dual regulation of systemic stablecoins. This complements the publication by the Bank on June 22, 2026, of its policy positions for the regulation of systemic stablecoin issuers. The Bank's policy statement includes a consultation on draft rules for sterling-denominated systemic stablecoin issuers, which closes for comments on September 22, 2026.
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Section 4 of the joint Guidance on the operation of the Digital Securities Sandbox, which has been updated to permit stablecoins to be used as a settlement asset in the Digital Securities Sandbox, provided they meet the minimum criteria set out within the guidance.
Firms in group two should study closely the PS26/11: Regulated cryptoasset activities, which covers activity-specific rules for firms, which are:
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trading platforms or intermediaries
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providing safeguarding (custody) services for their clients' cryptoassets
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lending and borrowing
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staking providers.
Finally, firms in group three should read the PS26/9: Admissions and disclosures (A&D) and market abuse (MARC) policy statement, which covers:
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disclosure requirements for offers and admissions
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due diligence and admission standards
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market abuse controls.
The FCA has also published an aggregated Cost Benefit Analysis—a consolidation of its analysis of the costs of implementation and ongoing costs of the regime. The FCA estimates that the annual total net direct cost to business for impacted firms will be GBP126M.
More publications for 2026
The FCA expects to consult later this year on the following:
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decentralized finance (DeFi) guidance
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operational resilience guidance for firms using distributed ledger technology (DLT)
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updates to the Financial Crime Guide relevant to cryptoasset firms
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(together with the Bank) how the FCA rules will apply when a stablecoin issuer is recognized as systemic by HM Treasury.
It has also said that it will publish a policy statement in September 2026 on how the regulatory perimeter applies to cryptoasset activities.
Key dates
The new crypto regime goes live on October 25, 2026. The FCA's crypto authorization gateway opens on September 30, 2026, and closes on February 28, 2027. Firms can apply now for a pre-application meeting with the FCA ahead of the gateway opening.
The legislation underpinning the regime, the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (SI 2026/102), includes a transitional provision that enables existing cryptoasset firms that are unsuccessful in securing authorization to run off their U.K. business in an orderly way and exit the U.K. market.
How Winston Taylor can help
We are experienced in all aspects of the U.K.'s new crypto regime and would be happy to assist you in assessing how it applies to your business, as well as guiding you through an authorization application or a decision to run off the business.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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