FCA Aims for Clear Crypto Regulations Ahead of October Deadline

The UK Financial Conduct Authority (FCA) has initiated a consultation process on regulatory guidelines for the cryptocurrency industry. The agency seeks input from firms on draft perimeter guidance, which will help shape the future of crypto regulation in the country.

Under the proposed framework, seven new regulated activities will be introduced through the Financial Services and Markets Act 2000 (Crypto assets) Regulations 2026. Firms carrying out these activities 'by way of business' in the UK will require Part 4A FSMA authorization. These activities include issuing qualifying stablecoins, safeguarding or arranging the safeguarding of qualifying crypto assets, operating a qualifying crypto asset trading platform, and others.

The FCA has emphasized that decentralization does not automatically exclude firms from regulation. The guidance takes a substance-over-form approach, using decision trees and scenario-based examples to help firms determine whether their activities fall within the regulatory perimeter.