UK FCA Finalises Crypto Rules: Risk-Based Capital from Oct 2027

UK financial regulators have finalized a new crypto rulebook. The Financial Conduct Authority set an effective date of October 2027 for its risk-based framework, a shift from earlier one-size-fits-all proposals that drew criticism from the industry for being too costly.

Under the final rules, crypto firms will assess risks on their balance sheets and decide how much capital to hold. They must run their own annual stress tests. The FCA will then review those assessments. Smaller firms face lighter disclosure requirements, which should lower compliance costs.

David Geale, the FCA's executive director for payments and digital finance, said the goal is to give crypto a foundation to build on. "Firms have been asking us for regulatory clarity and we think we've delivered it," he said.

Dan Coatsworth, head of markets at investment platform AJ Bell, cautioned that while regulation strengthens consumer protection and reduces scams, it doesn't remove risk completely.