FCA sets Oct 2027 crypto regime start. Application window Sept 2026-Feb 2027. Stablecoin capital requirement cut to 1% after industry feedback. Late applications risk disruption.
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The FCA has locked in a date for its next crypto rulebook. Firms that want to keep operating in the U.K. after October 2027 will need full authorization under the Financial Services and Markets Act, not just the anti-money laundering registration they hold today.
The application window runs from Sept. 30, 2026 to Feb. 28, 2027. The new regime takes effect Oct. 25, 2027. The FCA said firms already registered under the Money Laundering Regulations must still submit a fresh application or amend existing permissions. Late or poorly prepared applications risk delays, the regulator warned.
The rules cover trading platforms, custodians, stablecoin issuers, staking services and other crypto intermediaries. The FCA had already opened a final consultation on those areas before the wider switch-on. That consultation closed June 3.
One change came after industry feedback. The FCA cut the proposed capital requirement for stablecoin issuers to 1% of issued value, down from an earlier 2% proposal. David Geale, the FCA’s executive director for payments and digital finance, told Reuters the feedback was that the regulator was “starting a bit high.” He said the final rules were based on evidence from industry.
Most stablecoins will fall under FCA supervision. Tokens judged to be systemic will face tougher Bank of England oversight. The FCA’s issuer rules apply to sterling-denominated stablecoins, a market that remains small compared with dollar-backed tokens.
The broader framework also brings market conduct into the FCA’s crypto rulebook. The regulator has listed admissions, disclosures, market abuse rules, custody, prudential standards and consumer duties among the areas covered by its published consultations and future policy statements.
The Guardian reported that crypto firms in the U.K. will need to prove they can handle market stress, hold capital against risky assets and submit annual stress tests. Geale said, “For the first time, we’ve got a comprehensive regulatory framework for crypto in the UK.”
The FCA also plans more work on decentralized finance. The U.K. framework is expected to distinguish “truly decentralised” services from platforms with an identifiable operator or controlling entity. Larger front ends and controlled DAOs are more likely to fall inside supervision, crypto.news reported.
Firms now have a set application window, a 2027 start date and a clearer view of how stablecoins, exchanges, custody and staking will be treated. The next step is preparation. The FCA has urged companies to start early to avoid disruption.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.