The UK's Financial Conduct Authority on Tuesday finalized a broad crypto regulatory framework that introduces prudential requirements, market abuse controls and stablecoin standards ahead of a mandatory authorization regime scheduled to begin on Oct. 25, 2027.
The regime sets a common regulatory framework across the full range of regulated cryptoasset activities, applying conduct, operational resilience and consumer protection standards while drawing on existing financial services rules where risks are comparable, the regulator said in an executive summary of the policy package.
It applies to firms operating crypto trading platforms, dealing and arranging businesses, custodians, stablecoin issuers, lending and borrowing providers, staking firms and certain decentralized finance firms where an identifiable controlling entity exists, the regulator added.
The regime requires UK qualifying cryptoasset trading platforms, or QCATPs, to conduct due diligence, meet admission criteria and publish qualifying cryptoasset disclosure documents for assets admitted to trading. The FCA also removed an exception that previously allowed fungible cryptoassets to be listed without a disclosure document, according to the policy statement.
