The UK Financial Conduct Authority has launched a consultation outlining plans to regulate key crypto activities, with a full framework set to take effect by October 2027.
The regulator said firms will be able to apply for authorisation from September 2026, as it moves to bring services such as trading, custody, stablecoin issuance and staking within its oversight.
“It is drafted around intermediated models: issuers, custodians, venues, staking providers, rather than around protocol-level functions,”
Said Digital & Analogue Partners partner, Yuriy Brisov.
The proposed framework adopts an activity-based approach, focusing on specific services rather than licensing entire firms, which the FCA believes better reflects the current structure of centralised crypto markets.
Brisov said the model is “more flexible than an entity-based licence but still aligns with today’s CeFi taxonomy,” while noting that decentralised finance remains less clearly defined under the current proposals. Following the announcement the FCA position was unchanged at $XX.
The consultation marks a shift from the UK’s existing regime centred on financial promotions and anti-money laundering toward a more comprehensive system governing cryptoasset services.
Outstanding questions remain around DeFi, systemic risks and the role of banks, with further guidance expected later this year as policymakers aim to build an “open, sustainable and competitive” crypto market.