UK Finalizes Crypto Capital Rules: 40% Risk Weight for All Assets

On June 29, the FCA released final crypto rules that set a 40% capital requirement on all eligible cryptoasset positions and cut the stablecoin coefficient to 1%. The regulator also extended market abuse rules to any asset on a UK-authorized platform. Authorization is due Oct. 25, 2027.

Capital Coefficient: 40% for Everything, 1% for Stablecoins

The 40% net risk position requirement replaces an earlier two-tier proposal. Every coin on a UK exchange now gets the same capital charge, regardless of volatility or liquidity. Stablecoin issuers received a concession: the coefficient dropped from 2% to 1% after industry pushback, per the FCA's policy statements.

Market abuse rules now cover insider trading and manipulation for all cryptoassets on UK platforms. Platforms with annual turnover above £10 million must share surveillance data to catch cross-platform manipulation. Baker McKenzie said the rules apply as "designated activities"; the obligation attaches to the regulated activity, not just the authorized promoter, extending practical scope across the UK crypto market.

Pre-application support starts July 2026. The authorization window runs Sept. 30, 2026 to Feb. 28, 2027. Existing AML-only registrations will not roll over into the new regime. Until Oct. 25, 2027, the FCA's enforcement power mainly covers financial promotions and AML requirements.