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UK Reduces Capital Requirements for Stablecoin Issuers
The FCA set minimum capital and stress-testing standards for stablecoin issuers, with compliance starting October 2026. The final rules include a lower capital floor than early drafts.
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The Financial Conduct Authority on Tuesday finalised rules for stablecoin issuers, setting minimum capital and stress-testing standards. The requirements apply to firms that issue tokens backed by fiat currency under the UK’s new digital-asset framework.
The capital rules force issuers to hold a base layer of liquid assets, scaled to the value of coins in circulation. The FCA said the regime is built to guarantee that issuers can meet redemptions without triggering a run on reserves. The regulator also banned insider trading and market manipulation in crypto, extending existing financial-conduct rules to the stablecoin sector.
The new regime rolls out in phases. Capital and stress-testing compliance starts in October 2026, with full alignment required by January 2027. Firms that already issue stablecoins in the UK have until the end of 2025 to apply for authorisation.
The UK Treasury has identified stablecoins as a priority for its push to become a crypto hub. The FCA’s rules follow the Financial Services and Markets Act, which gave the watchdog authority over digital assets. By setting a clear capital baseline, the regulator hopes to reduce the uncertainty that has kept some large issuers from operating in the UK.