UK Finalises Cryptoasset Rules: Key Considerations for Non-UK Firms

With the United Kingdom’s core cryptoasset framework now largely finalised, non-UK firms should be assessing how the new regime affects their UK activities and any wider UK-EU operating model.

On 30 June 2026, the UK Financial Conduct Authority (FCA) published the final package of policy statements covering admissions and disclosures, stablecoin issuance, regulated cryptoasset activities, prudential requirements, and application of the FCA Handbook (PS26/9–PS26/13), with the new regime due to apply from 25 October 2027.

The package also included finalised guidance on the FCA’s approach to international cryptoasset firms seeking UK authorisation (FG26/7). The FCA identifies overseas firms providing, or seeking to provide, cryptoasset services to UK consumers or operating in the UK market as among those affected by the new regime, noting that the applicable requirements will depend on each firm’s products, services, and business model.

While the final rules broadly reflect the consultation proposals, the FCA has made targeted changes to improve proportionality and operational effectiveness.

Below, we highlight some of the key developments in the final rules, how the UK regime applies to non-UK firms and how it compares with the EU framework for firms operating across the UK and EU, and the practical considerations for non-UK firms with UK activities.

KEY DEVELOPMENTS IN THE FINAL RULES

The overall structure of the UK regime remains largely unchanged following consultation, however, the FCA has made targeted refinements that may affect how non-UK firms assess the cost, governance, and operational design of establishing a UK-authorised presence:

• Qualifying Stablecoin Issuers. The capital requirement for qualifying stablecoin issuers has been reduced from 2% to 1% of qualifying stablecoins in issuance. The FCA has also removed the requirement to estimate redemption forecasts when determining the composition of backing assets, confirmed that backing assets will be held under statutory trust arrangements, adjusted redemption timelines to improve operational effectiveness, permitted limited intragroup custody subject to safeguards, allowed up to a 5% excess in the backing asset pool, and clarified how redemption requirements apply in the secondary market.
• Trading Firms. The FCA has simplified the prudential treatment of qualifying cryptoasset positions by replacing the proposed two-tier classification with a single framework. Cryptoassets that can be prudently valued and are admitted to trading on a UK qualifying cryptoasset trading platform will be subject to more proportionate capital treatment than those that do not meet these conditions. The FCA has also adopted a more proportionate approach to public prudential disclosures, removing the proposed requirement to disclose publicly the own funds threshold requirement and liquid asset threshold requirement.
• Custodians and Other Cryptoasset Service Providers. The FCA is proceeding with the new client cryptoasset custody rules (CASS 17) while adopting a technology-neutral approach to private key management and making targeted refinements to settlement float arrangements, best execution, and staking, among other operational requirements. Admissions and disclosure requirements have also been refined, including changes to due diligence requirements, admission criteria, and supplementary disclosure documents.

APPLICATION OF THE UK REGIME TO NON-UK FIRMS

The application of the UK regime depends on the regulated activity being carried on, with different activities subject to different territorial tests:

• Trading Platforms, Dealing and Arranging. HM Treasury’s policy note provides that non-UK firms dealing directly or indirectly with UK consumers may require UK authorisation regardless of where they are established. By contrast, overseas firms carrying on those activities solely with UK institutional customers would generally be expected to fall outside the regime provided that those institutional customers are not acting as intermediaries for UK consumers.
• Qualifying Stablecoin Issuance. The regulated activity is focused on issuing qualifying stablecoins from a UK establishment. Accordingly, a non-UK issuer will not necessarily be carrying on regulated UK stablecoin issuance simply because its stablecoin is available in the UK or traded on secondary markets. However, where that stablecoin is publicly offered in the UK or admitted to trading on a UK-qualifying cryptoasset trading platform, the UK’s admissions and disclosure requirements may still apply.

The application of the UK cryptoasset regime also depends on how the relevant digital asset is classified. Firms should consider whether a digital asset is classified as electronic money or a qualifying stablecoin. Digital assets that constitute electronic money fall within the existing UK electronic money regime, whereas qualifying stablecoins are regulated under the UK cryptoasset regime. The applicable authorisation requirements will depend on that classification.

COMPARISON WITH THE EU REGIME

The UK and EU regimes share many of the same policy objectives, but differ in several important respects for non-UK firms.

Territorial Scope

Under the EU’s Markets in Crypto-Assets Regulation (MiCA), cryptoasset service providers generally require authorisation in an EU member state and must satisfy certain establishment requirements such as a registered office, effective management, and appropriate governance within that member state.

Once authorised, firms can generally passport services throughout the European Economic Area. By contrast, the UK regime applies by reference to specified regulated activities and their UK territorial connection. As discussed above, that territorial connection differs depending on the activity being carried on.

Regulatory Framework

MiCA establishes a standalone cryptoasset regime. By contrast, the UK has incorporated cryptoasset activities into the existing Financial Services and Markets Act 2000 framework. For non-UK groups with an existing UK-authorised entity, many existing governance, conduct, and prudential requirements may already be familiar, potentially reducing implementation effort. Firms entering the UK market for the first time, however, will have to navigate the broader UK financial services authorisation framework alongside the cryptoasset regime.

The FCA’s guidance on international cryptoasset firms also states that its baseline expectation is that firms requiring FCA authorisation will carry on regulated cryptoasset activities through a UK legal entity, subject to limited exceptions for certain overseas operators of qualifying cryptoasset trading platforms.

Other Differences

The regimes differ in several other substantive areas, including capital requirements for qualifying stablecoin issuers, safeguarding arrangements, and the scope of certain regulated activities.

The regimes also take different approaches to the classification of digital assets. Under MiCA, e-money tokens form part of the MiCA framework while also being subject to the EU electronic money regime. By contrast, the UK distinguishes qualifying stablecoins from electronic money, with separate regulatory regimes applying to each. Firms should therefore not assume that the regulatory analysis or authorisation requirements under MiCA will produce the same outcome under the UK regime.

Both frameworks continue to evolve. The FCA has indicated that further policy development is expected in areas including DeFi, regulatory reporting, financial crime, and firm failure, while the European Commission has launched a targeted review of MiCA. Firms operating across both jurisdictions should expect both regimes to continue developing as implementation experience grows.

PRACTICAL CONSIDERATIONS FOR NON-UK FIRMS

Non-UK firms should continue to consider the following:

• Whether any of their activities fall within the scope of the UK cryptoasset regime
• Whether any digital assets are correctly classified under the UK framework before assessing the applicable regulatory regime and authorisation requirements
• How any existing or proposed EU operating model aligns with the UK’s authorisation and territorial requirements
• Whether a UK legal entity or another UK operating structure is required

Where firms already have a UK regulatory presence, existing registrations and authorisations will not convert automatically. As such, firms registered under the UK Money Laundering Regulations, authorised under the UK Payment Services Regulations or UK Electronic Money Regulations, or currently relying on the UK financial promotions regime should assess whether separate authorisation will be required under the new cryptoasset framework.

For many non-UK firms, the key challenge is not understanding the UK or EU regime in isolation, but how the two regimes interact within a single operating model. Early assessment of business activities, legal entity structure, and digital asset classification should help reduce implementation challenges before the regime takes effect.