The UK's cryptoasset regulatory framework continues to take shape, with HM Treasury and the FCA publishing further material on the future perimeter for cryptoasset activities. Together, the draft Regulations and the FCA's new perimeter guidance give firms a clearer sense of how stablecoins, safeguarding, trading platforms and related services will be regulated as the regime moves towards implementation.
Draft cryptoasset regulations laid before Parliament
The draft Financial Services and Markets Act 2000 (Cryptoassets) (Miscellaneous Amendments) Regulations 2026 have been laid before Parliament.
The Regulations make targeted changes to the UK's new cryptoasset regulatory framework, principally to prevent stablecoin payment activities from being caught by rules designed for cryptoasset trading. In particular, activities involving UK qualifying stablecoins issued by an FCA-authorised issuer are generally removed from the regulated activities of dealing as principal, dealing as agent and arranging deals. Temporarily holding such stablecoins in connection with a payment transaction is also excluded from the cryptoasset safeguarding activity. However, lending and borrowing remain regulated, reflecting the UK government's view that they pose distinct consumer and market-integrity risks. The Regulations also clarify the perimeter around stablecoin issuance and backing assets, bring forward provisions confirming that qualifying stablecoin backing arrangements are not, subject to the relevant conditions, collective investment schemes or alternative investment funds, and clarify their treatment under the e-money regime.
More broadly, the Regulations introduce targeted exemptions intended to make the regime more proportionate and internationally competitive. These include exclusions for certain proprietary trading and market-making, qualifying stablecoins used in institutional collateral and repo arrangements, providers that merely supply non-discretionary technical interfaces, and certain safeguarding activities undertaken through central securities depositaries. Corresponding changes are made to the financial promotions regime, including making the issuance of qualifying stablecoins a controlled activity and qualifying stablecoins a controlled investment, although the technical-services exclusion is not replicated for financial promotions. Overall, HM Treasury says the amendments are intended to provide greater regulatory certainty, reduce unnecessary compliance costs and avoid overlapping regulation ahead of wider payments reform, while keeping higher-risk activities within the FCA perimeter.
FCA publishes cryptoasset perimeter guidance
The FCA has also published PS26/18: Cryptoasset Perimeter Guidance, which explains how the UK's expanded cryptoasset regulatory perimeter will operate when the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 come fully into force on 25 October 2027.
The guidance is intended to help firms determine whether their activities require FCA authorisation. It covers the new regulated activities of issuing qualifying stablecoins, safeguarding cryptoassets, operating qualifying cryptoasset trading platforms, dealing and arranging in qualifying cryptoassets, and arranging cryptoasset staking. It also explains important concepts including what constitutes a qualifying cryptoasset or qualifying stablecoin, the "by way of business" test and the territorial reach of the regime. In particular, certain services provided by overseas firms to UK consumers can be treated as carried on in the UK. The FCA emphasises that perimeter assessments are substance-over-form and fact-specific, and that its guidance explains, rather than alters, the statutory perimeter set by Parliament.
Following consultation, the FCA has proceeded broadly with its original proposals but made targeted clarifications, particularly around technical and infrastructure providers, decentralised models, safeguarding and "control", staking, lending and borrowing, and the distinction between qualifying cryptoassets and tokenised specified investments. The FCA confirms, among other things, that merely providing information or analytics will not ordinarily amount to arranging transactions, that advice on qualifying cryptoassets is not itself a newly regulated activity, and that cryptoasset lending and borrowing are not standalone regulated activities but may fall within the dealing, arranging or safeguarding perimeter depending on their structure. Importantly, however, the guidance reflects the legislation as it stood before the UK government's new amending Regulations summarised above. The FCA therefore intends to consult again in early Q4 2026 on changes to its Perimeter Guidance Manual reflecting those amendments, including the new exclusions for certain technical services, UK qualifying stablecoin activities and temporary payment-related safeguarding, with final revised guidance expected in early 2027.
The UK regime is being refined to distinguish lower-risk payment and infrastructure activities from higher-risk trading, lending, borrowing and safeguarding services. The detail will continue to evolve as the FCA updates its guidance, but firms should use the material now available to revisit their perimeter analysis, authorisation strategy and implementation plans before the new regime comes fully into force.
