UK FCA Finalizes Crypto Rules, Sets October 2027 Deadline

The framework also introduces operational requirements. Firms must hold capital against higher-risk assets and run annual stress tests. Unlike banks, which receive standardised scenarios from the BoE, crypto firms can design their own testing models based on internal risk assessments and then submit the results to the FCA, the regulator said.

FCA Executive Director for Payments and Digital Finance David Geale said the framework applies the same regulatory principles used across traditional financial services. Firms that manage comparable risks should face comparable standards, he added.

The FCA warned businesses not to delay applications. Incomplete or late filings could slow approvals and interrupt operations before the new rules take effect, the regulator said.

On decentralized finance, the FCA flagged future guidance that will distinguish between protocols without an identifiable controlling entity and platforms with centralized governance or controlled DAOs. Services with identifiable operators are more likely to fall within the regulator's scope, the FCA said.

For traders evaluating compliant platforms, the best crypto brokers in the UK list tracks firms that hold FCA registration. The regulator said it will continue to engage with the industry as the regime takes shape.