UK FCA Outlines Crypto Regulation Path with Activity-Based Perimeter
- The UK Financial Conduct Authority (FCA) is seeking feedback on seven regulated cryptoasset activities, including stablecoin issuance, trading platforms, and staking, with final rules expected this summer.
- Crypto firms can apply for authorization starting September 2026, ahead of the full regulatory regime taking effect in October 2027.
- The FCA’s activity-based perimeter focuses on intermediated models like issuers and custodians rather than protocol-level functions, aligning with current CeFi structures.
- A separate consultation on DeFi guidance and operational resilience rules for distributed ledger technology will occur later this year.
- The framework repurposes post-2008 tools like authorisation and market-abuse surveillance but does not fully address risks from the technology itself.
The UK is advancing towards comprehensive crypto regulation by establishing a structured system governing cryptoasset services, moving away from a largely unregulated environment focused on financial promotions and anti-money laundering. This shift aims to create an open, sustainable, and competitive market.
The FCA’s approach offers flexibility by focusing on activities rather than entire entities, which may better accommodate evolving market structures while leaving some areas like DeFi protocols less clearly defined at this stage. (Source)
