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The UK government has laid the final regulations in parliament
to bring core cryptoasset activities within the Financial Services
and Markets Act 2000 (FSMA) perimeter. This will see the creation
of new regulated activities for cryptoassets, such as operating a
cryptoasset trading platform and issuing stablecoins, as well as
admissions and disclosures, and market abuse regimes.
The rules will come into force from 2027, aiming
to give firms legal clarity over the sector’s regulatory
position and to boost consumer confidence by making sure that
consumers are robustly protected. The changes mean that firms will
need to be regulated by the Financial Conduct Authority in the same
way as other providers of financial products – including
being subject to established transparency standards.
In October 2023, HM Treasury published detailed proposals for
creating a UK financial services regulatory regime for
cryptoassets, including stablecoins. On 21 November 2024, the
government confirmed that it would proceed with introducing this
regime, broadly in line with the previously published proposals. On
29 April 2025, the government published draft statutory provisions
associated with the new regime, accompanied by an explanatory
policy note.
The government has said that through the new regime it is
helping to shape global standards for cryptoassets regulation. The
regime is designed to support responsible innovation, ensure open
and competitive markets, and promote the UK as a destination of
choice for digital asset businesses. It also says that bringing
cryptoassets firms into regulation will enhance transparency and
oversight across the sector – making it easier to detect
suspicious activity, enforce sanctions and hold firms to account
where they fall short.
At the same time, the FCA has launched its own consultations on its UK crypto rules, which
ends on 12 February 2026. It seeks views on:
Admissions and disclosures – Rules for listing
cryptoassets and what firms must tell investors, so people have the
facts before they invest.
Market abuse – Measures to stop insider trading and
manipulation, so markets are fair.
Cryptoasset trading platforms – Standards for exchanges
to keep trading safe and reliable.
Intermediaries – Requirements for brokers and other
intermediaries, so they act responsibly.
Staking – Making sure the risks are clear when firms
offer staking – a service that lets you lock up your crypto
for a reward.
Lending and borrowing – Rules to protect both crypto
lenders and borrowers.
Decentralised finance (DeFi) – DeFi lets people trade,
lend and borrow using crypto without an intermediary. The FCA is
asking if the same rules that apply in traditional finance should
also apply here.
Prudential requirements – Financial safeguards for firms,
so they can better manage risk.
Soon, the FCA will consult further on the Consumer Duty and
other consumer protection matters for cryptoassets, including its
approach to financial promotions. Following consideration of
responses to all the consultations as part of the Crypto Roadmap,
as well as other related consultations, it will set out its final
rules and guidance in Policy Statements.
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.