UK Crypto Rules Landmark Framework Requires Authorization by 2027

The UK's Financial Conduct Authority (FCA) has published its landmark crypto regulatory framework, marking the completion of its crypto roadmap. The new rules aim to bring digital assets under the regulator's purview, holding crypto companies to 'similar standards' as other financial service providers in the country.

Under the new framework, cryptocurrency firms must obtain FCA authorization to operate in the UK. This includes trading platforms, custodians, stablecoin issuers, staking companies, and other intermediaries. The licensing window for crypto companies will open from September until February 28, 2027, before the regime goes live on October 25, 2027.

The FCA has also maintained the core stablecoin framework but made minor adjustments, including simplifying the backing asset composition requirement and requiring issuers to offer specific withdrawal rights to users. The regulator will set out its policy statements during a webinar on July 17 and publish further guidance in September.