FCA publishes its final crypto rulebooks for UK
- Tokenization Insight
- Jun 30
- 2 min read
FCA publishes its final crypto rulebooks for the UK market. Key takeaways.
The UK is moving from a limited AML registration regime to a full financial services regulatory framework for cryptoassets. The new regime treats crypto firms much more like traditional financial institutions.
1️⃣ Crypto firms require full FCA authorisation
The current Money Laundering Regulations registration is replaced with full authorisation under the UK's financial services regime. Regulated activities include:
- Stablecoin issuance
- Custody
- Trading platforms
- Broker/dealer activities
- Arranging crypto transactions
- Principal trading
- Staking services
- Certain lending and borrowing activities
Existing registered firms must apply through the new gateway.
2️⃣ Prudential standards similar to traditional finance
Crypto firms will now be expected to operate like regulated financial institutions. Requirements include:
- Minimum capital
- Liquidity management
- Operational resilience
- Governance
- Risk management
- Annual stress testing
- Wind-down planning
Capital requirements are calibrated based on business risks rather than applying one fixed standard.
3️⃣ Stablecoin regime becomes less stringent and more practical
The FCA softened several proposals. Key changes include:
- Capital requirement reduced from 2% to 1% of issued stablecoins
- Longer redemption timelines in certain circumstances
- Reduced disclosure obligations
- More proportionate treatment for sterling stablecoins
Systemic stablecoins will ultimately fall under the oversight of the Bank of England rather than solely the FCA.
4️⃣ Trading platforms face new market integrity rules
Crypto exchanges will operate under standards resembling regulated exchanges. Requirements include:
- Fair and orderly markets
- Conflict management
- Market surveillance
- Prevention of manipulation
- Clear listing standards
- Transparency around admissions
5️⃣ Lending, borrowing and staking regulated
The FCA introduces bespoke rules for:
- Crypto lending
- Borrowing services
- Staking providers
- Certain DeFi-related intermediaries
Rather than banning these activities, the FCA imposes disclosure, governance and risk-management obligations.
This represents one of the most significant regulatory milestones for the UK digital asset market. Banks now have greater regulatory certainty to expand custody, trading, tokenization and stablecoin offerings. Asset managers benefit from clearer rules for distributing tokenized funds and engaging with regulated crypto infrastructure.
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