The Financial Conduct Authority has softened several of its originally proposed crypto rules, choosing operational flexibility over the tighter restrictions it had floated in earlier consultations.
The revised approach falls under the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026, passed in February 2026. The full regime doesn’t take effect until October 25, 2027, but the FCA is opening its application gateway for firms to seek authorization starting September 30, 2026, running through February 28, 2027.
What actually changed
Two reversals stand out. First, the FCA will now allow matched principal trading and affiliate trading on UK Cryptoasset Trading Platforms, known as CATPs. Earlier proposals had sought to restrict these activities.
Second, the regulator walked back plans to broadly limit retail access to cryptoasset lending and borrowing. Instead of blanket restrictions, the FCA will require specific disclosure and consent guidelines.
