UK Publishes Landmark Crypto Rules Ahead of Mandatory Authorization Regime

The UK's Financial Conduct Authority (FCA) has published its landmark crypto regulatory framework, which sets out capital requirements, market abuse controls, and stablecoin standards for the digital asset industry. The framework represents a significant expansion of the FCA's oversight in the sector and establishes prudential requirements for regulated firms.

The new regime requires all regulated crypto firms to meet minimum capital buffers and annual stress tests. Unlike banks, which receive specific scenarios from the Bank of England, crypto companies will design their own tests based on internal risk models and submit results to the FCA each year.

The framework also introduces market abuse rules covering insider trading and market manipulation. Large trading platform operators will follow an industry-led monitoring approach, while the scope of mandatory on-chain surveillance has been narrowed from an earlier draft.