The UK Financial Conduct Authority launched a consultation on Wednesday covering seven regulated cryptoasset activities including stablecoin issuance, trading platforms, custody, and staking, with feedback due by June 3, 2025. Following legislative changes in February 2025 that brought crypto within regulatory remit, the FCA will publish final rules in summer 2025, open authorization applications in September 2026, and implement the full regime by October 2027. The framework adopts an activity-based perimeter focused on intermediated models rather than licensing entire firms, addressing custody integrity, financial crime, and market abuse while leaving gaps around non-custodial systems, DeFi protocols, and blockchain-native risks. Overseas operators serving UK users must reassess their structures, while banks gain opportunities to participate as custodians, stablecoin issuers, and service providers in what analysts call a consequential design choice for UK monetary infrastructure.
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