Firms involved in crypto currency investments will have to meet clearer standards under new rules set out today by the Financial Conduct Authority (FCA).
The regulator said all firms supporting people to buy, trade and hold crypto must meet financial resilience requirements, including capital and stress testing.
The FCA is also introducing new market integrity rules which will come into effect in October 2027 covering areas such as insider trading and market manipulation.
The new framework also sets out specific rules for stablecoins, a type of cryptoasset designed to maintain a stable value, typically by being linked to a currency such as the pound. Stablecoins will be subject to clear, strong and transparent standards the regulator said, helping to build trust in how they are used over time.
Following a consultation launched in April, the FCA said it has now simplified key elements of the regime to make it more workable in practice including simpler capital requirements for stablecoin firms and tailoring trading rules to better reflect how crypto markets operate.
The regulator said it has drawn on international best practice, applying established financial services standards where risks are comparable, including the Consumer Duty.
David Geale, executive director of payments and digital finance at the FCA said: “This is a significant moment for crypto regulation in the UK. We’ve created a framework that doesn’t force firms to choose between regulatory certainty and room to innovate – this regime means they can have both in a stable, competitive home to build and grow. For consumers, it means firms will be held to similar standards to other financial providers, though we can’t regulate away risk.”
Legislation in February this year brought cryptoassets into the FCA’s remit, marking one of the most significant expansions of the regulator’s oversight in years.
The FCA carried out its first operation to disrupt illegal peer-to-peer crypto trading in April.
It said that until the new rules come into effect in October 2027, the FCA’s oversight of crypto will continue to be limited to financial promotions and anti-money laundering controls.
Crypto firms, including trading platforms, intermediaries, custodians, stablecoin issuers and firms arranging staking must obtain FCA authorisation to operate in the UK. Staking refers to locking digital assets on proof-of-stake blockchains.
The FCA is encouraging firms to prepare now and make use of its pre-application support meetings available from July. Firms can apply for authorisation between 30 September 2026 and 28 February 2027, so they are ready to start or continue to trade under the new mandatory regime which will come into force on 25 October 2027.
The Government began the process for legislation bringing crypto assets into the regulatory perimeter in April 2025.
Research from the FCA in 2025 found that 12% of UK adults owned crypto, up from 10% in previous findings.
Awareness of crypto had also risen, climbing from 91% to 93%. The average value of crypto held by people increased from £1,595 to £1,842.
The FCA said crypto remains high-risk and consumers should understand what protections apply before investing. The new rules set by the FCA are designed to provide the foundation for a more sustainable and trusted crypto market in the UK, the FCA said.