The FCA is consulting on guidance covering stablecoin issuance, trading platforms, custody and staking, as the October 2027 authorisation deadline approaches
The Financial Conduct Authority (FCA) has released a consultation on perimeter guidance for the UK’s forthcoming cryptoasset regime, setting out its interpretation of which activities will require authorisation under legislation coming into force in October 2027.
Published on 15 April, CP26/13 proposes a new chapter in the FCA’s Perimeter Guidance Manual covering seven regulated cryptoasset activities:
- Issuing qualifying stablecoins
- Safeguarding cryptoassets
- Operating a qualifying cryptoasset trading platform (QCATP)
- Dealing in qualifying cryptoassets as principal or agent
- Arranging deals
- Arranging qualifying cryptoasset staking
The consultation closes on 3 June, with final guidance expected in September 2026.
The paper is framed around a five-question framework firms must work through: whether they are carrying on a regulated activity; whether it is carried on in the UK; whether it is carried on by way of business; and whether any exclusion or exemption applies.
Throughout, the FCA is clear sector terminology – words like “exchange”, “custody”, “wallet” or “broker” – does not determine regulatory status. What matters is the substance of what a firm does and the role it plays in the relevant arrangements.
Nick Jones, Founder and CEO at Zumo, tells Payment Expert the paper’s common thread was “clarifying exactly what falls within the regulatory perimeter” before the gateway opens, describing it as “another hugely positive step forward for the industry”.
He adds: “By engaging with the industry transparently, and in depth, the FCA is laying the foundations for a thriving onshore sector that’s set up for long-term, sustainable growth.”
Michael McCormick, Financial Services Managing Consultant at RSM UK, says to Payment Expert the paper addresses “one of the biggest barriers in the market today: firms not knowing whether they are in or out of scope”.
He continues: “Set against the backdrop of MiCA in the EU, the UK is positioning itself with a distinct, FSMA-based framework. Importantly, this is not just about compliance – it creates a real opportunity.”
Crypto: Stablecoins, safeguarding and the perimeter in practice
On stablecoin issuance, the FCA proposes that a firm must perform all three of its components – offering, redemption and maintaining value through backing assets – from a UK establishment to fall within the regulated space.
A firm carrying out only one of those elements would not be issuing a qualifying stablecoin under the proposed new rules, though it may still need dealing or arranging permissions depending on what it is doing.
Iana Dimitrova, CEO at OpenPayd, tells Payment Expert the government’s decision to bring stablecoins into the UK’s payments regulatory framework is a “critical step”. “[It] provides much-needed clarity and recognises stablecoins as a legitimate part of the financial landscape.
“For the UK to truly capitalise on this opportunity, the focus must be on enabling regulated, interoperable infrastructure that can bridge the gap between traditional finance and digital assets – this is where stablecoins have already proven their worth, particularly in solving long-standing frictions in cross-border settlement,” she adds.
The custody guidance proposed also breaks from traditional rules where a firm can be safeguarding cryptoassets even where the customer does not legally own the asset. What matters in the FCA’s proposal is whether the firm has the ability to transfer it to another person.
The FCA adds a further wrinkle for self-custody arrangements: a firm which contractually promises not to exercise control but technically retains the ability to do so will likely still be caught by the safeguarding activity.
Elsewhere, the regulator says lending and borrowing should not be standalone regulated activities, but warns that the underlying transactions will often constitute dealing, and that platforms facilitating such arrangements should expect to need arranging permissions at minimum.
Staking, decentralisation and territorial scope
Throughout the 97 pages of the FCA’s cryptoasset perimeter guidance, a distinguishment is made on staking between firms providing a genuine intermediation service and those offering purely technical infrastructure. A firm managing the full staking lifecycle, pooling customer assets or distributing rewards is likely within scope.
Simply operating a validator node is generally not – but the regulator is explicit that adding value beyond the technical function, whether through a rewards dashboard, compounding features or validator recommendations, is likely to bring a service back into scope.
The paper also takes a direct position on decentralisation, a question the industry has long pressed regulators on. The use of smart contracts, public blockchains or decentralised architecture does not place an arrangement outside the perimeter if there is an identifiable person carrying on the activity in the UK by way of business.
The FCA says it will look at who sets the key parameters, who controls how a service functions and who receives fees.
The territorial provisions are similarly far-reaching. Overseas firms selling qualifying cryptoassets to UK consumers – individuals acting outside any trade or profession – will be brought within scope regardless of where they are based.
The one meaningful carve-out is where an overseas firm deals through an intermediary authorised to operate a trading platform or deal as principal, which is intended to avoid pulling institutional cross-border flows unnecessarily into the UK perimeter.
With final guidance expected later in the year, McCormick concludes “firms that act early will be best placed to take advantage of that opportunity. Failure to act risks missing the cut-off window to apply in February 2027.”
