FCA Publishes Final Guidance on UK Cryptoasset Regulatory Perimeter

The Financial Conduct Authority on 16 September 2026 published final guidance explaining how the law underpinning the UK’s future cryptoasset regime applies to businesses and which activities may require FCA authorisation. The guidance, issued as policy statement PS26/18, comes ahead of the regime’s authorisation gateway opening on 30 September 2026 and the regime itself coming into force on 25 October 2027.

David Geale, executive director of consumers, payments and competition at the FCA, said: “We are building a crypto regime that firms, consumers and international partners can trust. Getting ready for regulation starts with understanding how the regime applies to your business. This guidance gives firms the clarity they’ve asked for so they can prepare with confidence.”

According to the FCA’s announcement, firms need the guidance now to prepare, with applications for authorisation opening from 30 September 2026. The guidance covers activities including issuing qualifying stablecoins, operating cryptoasset trading platforms, dealing and arranging deals, safeguarding cryptoassets and arranging cryptoasset staking.

Activities Inside the Perimeter

From 25 October 2027, the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 will introduce new regulated activities for cryptoassets into the FCA’s perimeter. Anyone wishing to carry on these activities by way of business in the UK will need to apply for authorisation, unless a relevant exemption applies or they are able to use the savings or transitional run-off provisions, according to the policy statement.

The FCA said the guidance is relevant to firms carrying out, or planning to carry out, regulated cryptoasset activities in the UK, such as safeguarding cryptoassets, operating a trading platform, or arranging deals or staking. It also applies to firms already authorised that may need extra permissions, firms registered under the Money Laundering Regulations, issuers of electronic money and payment service providers, traditional finance firms exploring cryptoasset markets, and overseas firms providing cryptoasset services to UK consumers.

The regulator told firms to read the guidance and work out whether they need FCA authorisation or a variation of permission, warning that existing registrations and permissions will not convert automatically. It advised firms unsure how the rules apply to them to seek independent legal advice.

Authorisation Window and Transitional Arrangements

The application window opens on 30 September 2026 and closes on 28 February 2027 for firms wanting to use the transitional arrangements. Under the savings provisions set out in the Cryptoassets Regulations, certain firms already operating in UK cryptoasset markets may continue specified activities for a limited period while they seek authorisation, subject to defined conditions and time limits.

Firms that apply within the window may, subject to meeting the relevant conditions, continue specified activities under the saving and transitional provisions until a determination is made on their application, according to the FCA’s overview of the new regime. Firms that apply after the window closes will not be able to rely on those provisions and may need to cease carrying on relevant activities until they are authorised. The FCA said firms should apply as early as possible within the window to maximise the period during which they can continue operating while their application is assessed.

To be authorised, a firm must show that it satisfies, and will continue to satisfy, the minimum standards in the Financial Services and Markets Act, known as the Threshold Conditions.

The FCA said it will support firms throughout the process, including through webinars and its pre-application support service (PASS). An introductory webinar on the new regime is available on demand, with further webinars set to cover applying the FCA Handbook, getting authorised and the prudential framework. Dual-regulated firms should also contact the Prudential Regulation Authority, the FCA said.

The regime is underpinned by the Cryptoassets Regulations, which were passed by Parliament on 4 February 2026 and brought a broad range of cryptoasset activities within the FCA’s regulatory perimeter for the first time, moving beyond the anti-money laundering and financial promotions standards that previously defined the regulator’s role in the market. Since January 2020, cryptoasset businesses operating in the UK, defined in the Money Laundering Regulations as cryptoasset exchange providers or custodian wallet providers, have been required to register with the FCA. Under the new regime, firms carrying on newly regulated activities will instead require authorisation under the Financial Services and Markets Act and will no longer need to register separately under the Money Laundering Regulations.

On 30 June 2026, the FCA published a series of policy statements setting out final rules and guidance on admissions and disclosures and market abuse (PS26/9), stablecoin issuance (PS26/10), regulated cryptoasset activities (PS26/11), prudential rules (PS26/12) and the application of the FCA Handbook (PS26/13).

The FCA consulted on the perimeter guidance in April 2026 as consultation paper CP26/13, with the consultation running from 15 April 2026 to 3 June 2026. It received 78 responses and said most respondents supported its approach.

The Government has since published amendments to the legislation introducing targeted exclusions and clarifications that provide greater certainty on the scope of the regulatory perimeter, including further clarity for certain technical services providers. The FCA said the changes will not affect most crypto firms, which it said can use the newly published guidance to prepare for authorisation now. In April 2026, the Government had also published a draft statutory instrument proposing to exclude activities involving UK-issued qualifying stablecoins from arranging and dealing, with the intention of bringing those activities under a modernised future payments regime.

The FCA will consult in October 2026 on targeted updates to the perimeter guidance in light of those legal changes. The consultation will cover UK qualifying stablecoins, proprietary trading and market making, certain technology providers, decentralised protocols, safeguarding arrangements involving central securities depositaries and financial promotions. The FCA aims to publish the updated guidance in early 2027.