The UK has entered a new stage in crypto regulation, with the Financial Conduct Authority’s consultation paper on cryptoasset perimeter guidance setting out how a new authorisation regime will apply to firms serving the market.
The paper covers stablecoins, custody, trading platforms, dealing, arranging and staking, with responses due by 3 June 2026. Firms will be able to apply for authorisation from 30 September 2026, and the wider regime is due to take effect on 25 October 2027.
The consultation sits on top of the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026, which were made on 4 February and bring cryptoasset activities within the FCA’s remit. The regulator has set the sequence for the rest of the year in its crypto roadmap, with final policy statements due this summer and final perimeter guidance due in the autumn.
The consultation turns scope into a business question
The FCA describes the paper as perimeter guidance. For firms with UK customers, the immediate issue is simpler: does the model fall inside scope, and, if it does, which permission will be needed. The consultation is intended to help firms understand when authorisation is required and which permissions apply across seven regulated cryptoasset activities, from issuing qualifying stablecoins in the UK to arranging qualifying cryptoasset staking. It also covers overseas firms serving UK consumers, stablecoin issuers, traditional finance firms, advisers and industry groups.
Joe David, CEO of Nephos Group, a UK accountancy and financial advisory firm, said the paper sends a wider signal about how digital assets are now being treated by policymakers.
“The FCA’s consultation on crypto regulation is significant not just for what it proposes, but for what it signals. Digital assets are now firmly on the table as a permanent part of the UK’s financial infrastructure. That shift in posture, from cautious observation to active framework-building, is what our industry should pay attention to.”
David also points to the operating burden behind the headline timetable.
“For firms operating in this space, the practical implications are immediate. Accounting systems, tax reporting, asset segregation and financial controls all need to meet the standards regulators will expect. The businesses that start preparing now will be in a strong position when the regime comes into force. Those that wait will find themselves scrambling.”
More than exchanges and token issuers
The paper reaches further than exchanges and token issuers. Its perimeter test turns on the substance of an activity, whether it is carried on in the UK, whether it is carried on by way of business, and whether any exclusion or exemption applies. Cross-border structures do not, on their own, place a firm outside scope where services are offered to UK consumers. The consultation also points to a wider territorial reach for some cryptoasset activities, including certain services provided from overseas.
That broadens the relevance of the consultation beyond crypto firms alone. The intended audience includes overseas firms serving UK consumers, stablecoin issuers, traditional finance firms, advisers and industry groups. For infrastructure providers, intermediaries and firms operating around the trade, the perimeter question now sits closer to product design, customer access and control over assets.
Simon Jones, co-founder and CEO of Reya, an Ethereum-based decentralised exchange, said the value of the consultation lies in how the rules are being shaped rather than imposed.
“The FCA moving toward a clear regulatory framework for crypto with a firm 2027 deadline is the kind of signal the industry has been waiting for. The fact that they’re consulting on the details before finalising the rules, rather than handing them down from above, matters. Getting industry input on how stablecoins, trading platforms, custody and staking get regulated is how you end up with a framework that actually works in practice rather than one that looks sensible on paper but creates friction that pushes activity elsewhere.”
He also linked the consultation to the UK’s standing as a market for crypto firms weighing location and structure.
“The UK has a real opportunity here. Hong Kong is moving fast, the US has made significant regulatory strides in the past year, and the EU has its own framework. Britain has deep financial expertise, world-class institutions, and a legal system that global firms trust. A well-designed crypto regime that’s built with the industry rather than against it puts the UK in a strong competitive position.”
Scott Dawson, CEO of DECTA, a payments processor and card issuer, also focused on how workable the final framework will be for firms using it.
“The challenge will be ensuring the rules are workable while being comprehensive. That means giving businesses absolute clarity on how to use the frameworks that are put in place with contingencies for the future.”
“If done well the crypto framework has the potential to position the UK as a credible and competitive global hub, but striking a balance between innovation and control will be key to its succe
Stablecoins sit near the centre of the framework
Stablecoins are one of the clearest examples of how the UK is defining the perimeter. Under the 2026 Regulations, “issuing qualifying stablecoin” becomes a regulated activity. A person issues a qualifying stablecoin where it offers or arranges the token from a UK establishment and also undertakes redemption and holds backing assets for stabilisation from a UK establishment. The same legislation defines a qualifying stablecoin as a qualifying cryptoasset that seeks to maintain a stable value against a particular fiat currency and is backed by fiat currency or other assets for that purpose.
The consultation paper makes clear that carrying out only one part of that chain does not, by itself, amount to issuing a qualifying stablecoin. A firm limited to providing technology, software, infrastructure or minting capability would not normally fall within the issuing activity, although the perimeter still turns on the substance of the arrangement as a whole.
Riccardo Tordera, Director of Policy and Government Relations at The Payments Association, the UK trade body for payments firms, used the consultation to draw a distinction between stablecoins and more speculative cryptoassets.
“Crucially, we make a clear distinction regarding stablecoins. We strongly support exempting qualifying stablecoins from any credit-financed purchase bans. Unlike speculative tokens, stablecoins are typically acquired for their utility and low volatility, not for price appreciation. Our aim is to ensure regulatory restrictions are narrowly targeted at high-risk, unbacked cryptoassets, without impeding the lawful use of stablecoins.”
Staking and custody bring edge cases into view
Staking and custody also sit close to the centre of the consultation. The legislation creates a separate regulated activity for qualifying cryptoasset staking. The consultation then sets out where the FCA thinks the line falls between a regulated staking arrangement and a narrower technical service. Lifecycle management, pooling customer assets and distributing rewards may fall inside scope. It treats pure technical provision more narrowly.
Custody raises a similar set of issues around control. The legislation says a firm safeguards a cryptoasset where it has control through any means that would enable it to transfer the benefit of that cryptoasset. The consultation adds that firms should look closely at how control is exercised, where the service is carried on, and which safeguards are actually built into the model.
Nick Jones, founder and CEO of Zumo, a UK digital-asset infrastructure provider, said the UK’s staged process has given firms a clearer planning window.
“This will enable proactive firms to prepare early for the new regime and it’s fair to say that thanks to the FCA’s crypto roadmap, the UK is benefitting from a more systemic, phased, and predictable process than has been seen in many other jurisdictions.”
He added: “By engaging with the industry transparently, and in depth, the FCA is laying the foundations for a thriving onshore sector that’s set up for long-term, sustainable growth. What’s now required is the creation of compliant infrastructure that can accommodate new levels of operating obligations and act as a credible bridge to the UK market – and that’s where our current focus lies.”
The next decision point
The timetable now gives firms a fixed sequence. Responses to the consultation are due by 3 June, with final perimeter guidance following in the autumn, while the application period for firms that want to undertake the new regulated cryptoasset activities will run from 30 September 2026 to 28 February 2027. The broader regime is expected to come into force on 25 October 2027.
For firms operating in or into the UK, the remaining work sits less in headline policy debate and more in business model review. The consultation paper asks firms to examine who controls assets, who intermediates access, where the service is carried on, and whether the activity forms part of the business itself. That review will influence who files for authorisation, who adjusts their structure, and who finds the UK market harder to serve under the rules now being set out.