Why did the UK Financial Conduct Authority reduce the stablecoin capital requirement to 1%?

The UK Financial Conduct Authority reduced the proposed capital requirement from 2% to 1% after considering industry feedback. The regulator said the change makes the framework more proportionate while maintaining safeguards for consumers and the financial system.

When will the UK's new crypto regulations take effect?

The UK Financial Conduct Authority said the new crypto regulatory regime is scheduled to come into force in October 2027. Until then, its oversight will remain focused mainly on financial promotions and anti-money laundering requirements.

What does the 1% capital requirement mean for stablecoin issuers?

The UK Financial Conduct Authority said the 1% capital requirement is intended to provide a more proportionate prudential framework for stablecoin issuers. The regulator believes the lower requirement may reduce barriers for firms while preserving financial resilience.

Why is the UK's crypto framework important for the industry?

The UK Financial Conduct Authority's framework provides greater regulatory clarity for cryptocurrency businesses planning to operate in the country. Firms now have a defined timeline to prepare for authorisation and compliance before the rules begin in October 2027.

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UK cuts stablecoin capital requirement to 1%

Q: Which crypto businesses will need authorisation under the UK's new rules?

The UK Financial Conduct Authority said cryptocurrency trading platforms, custodians, intermediaries, stablecoin issuers and staking service providers will need FCA authorisation to operate under the new regulatory framework from October 2027.

Written by Heidi Cuthbert Published Jul 6, 2026, 3:25 AM

The UK Financial Conduct Authority reduced the proposed capital requirement for stablecoin issuers from 2% to 1% under its final crypto regulatory framework.
The wider crypto regime is scheduled to take effect in October 2027 and will require crypto businesses to obtain FCA authorisation.
The regulator said the change makes the framework more proportionate while maintaining safeguards for consumers and the financial system.

The UK Financial Conduct Authority (FCA) has reduced the proposed capital requirement for stablecoin issuers from 2% to 1% as part of its final cryptoasset regulatory framework, with the new regime scheduled to begin in October 2027.

The revised framework will require cryptocurrency trading platforms, custodians, intermediaries, stablecoin issuers and staking service providers to obtain FCA authorisation before operating in the United Kingdom under the expanded regulatory regime.

The FCA said reducing the capital requirement from 2% to 1% would make the prudential framework "more proportionate" while maintaining a robust regulatory standard for stablecoin issuers.

The regulator said the updated framework reflects industry feedback that the original proposal could have imposed unnecessary burdens on larger issuers, while continuing to require firms to maintain adequate financial resources and comply with broader supervisory requirements.

The FCA said its current oversight remains focused primarily on financial promotions and anti-money laundering requirements until the broader framework comes into force in October 2027, and no listed companies were materially affected by the announcement.

The revised rules are intended to provide greater regulatory certainty for businesses considering entering the UK cryptocurrency market, although firms will need to prepare for a wider range of authorisation and compliance obligations before implementation.

The FCA said the revised framework is designed to balance consumer protection, financial stability and market competition, with the lower capital requirement intended to support a more proportionate approach to stablecoin regulation.