The Financial Conduct Authority (FCA) has initiated consultation CP26/13 on April 15, 2026, inviting firms to provide feedback on crypto perimeter rules by June 3. Exchanges, custodians, and stablecoin issuers are required to obtain FSMA Part 4A authorization before the October 25, 2027 deadline. The FCA has set September 30, 2026, as the opening date for the authorization gateway, allowing firms 18 months to complete applications before the regime takes effect.
The FCA is seeking input from the industry on crypto rules before the 2027 deadline. The consultation aims to clarify which activities involving qualifying cryptoassets and stablecoins will necessitate formal FCA authorization. The FCA’s guidance aims to reduce uncertainty for firms currently operating under Money Laundering Regulations as they transition to full FSMA authorization.
The agency’s objective is to establish an open, sustainable, and competitive crypto market that people can trust. Firms have until June 3, 2026, to submit their responses, with the FCA expected to release final guidance in September 2026.
The upcoming framework will introduce seven new regulated activities through the Financial Services and Markets Act 2000 (Crypto assets) Regulations 2026. Any firm engaging in these activities in the UK will require a Part 4A FSMA authorization.
The regulated activities include issuing qualifying stablecoins, safeguarding qualifying crypto assets, operating a crypto asset trading platform, dealing in crypto assets, arranging deals in crypto assets, and arranging crypto asset staking. The FCA emphasizes that decentralized features do not exempt firms from regulation, emphasizing substance over form.
The FCA provides definitions for key terms such as qualifying cryptoassets and stablecoins. A qualifying cryptoasset is a transferable cryptographic asset that excludes electronic money, fiat currencies, central bank digital currencies, and limited-network assets. A qualifying stablecoin is a cryptoasset seeking to maintain a stable value relative to fiat currency through backing assets.
Overseas firms serving UK users are also covered under the FCA’s guidance. The authorization gateway opens on September 30, 2026, and closes on February 28, 2027. Firms applying before the gateway closure can continue operating under savings provisions while their applications are processed.
MLR-registered firms are reminded that authorized firms must still comply with MLR obligations in many cases. The FCA’s guidance addresses overseas branches versus subsidiaries through scenario-based questions.
The consultation document, CP26/13, is structured in a Q&A format and will be included in the FCA’s Perimeter Guidance Manual as a new chapter. The FCA states that the cost impact of the consultation is minimal, as it is guidance only. Final rules on prudential standards, conduct requirements, and market abuse are expected to be published before the October 2027 go-live date.
Firms seeking assistance before applying can reach out to the FCA through its pre-application support service. The agency is also conducting webinars to guide firms through the upcoming changes ahead of the authorization gateway opening.
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