The UK Financial Conduct Authority published consultation paper CP26/36 on 21 October, with guidance on the boundaries of the new cryptoasset regime. The guidance explains the exclusions introduced by the new 2026 amending regulations, such as temporary settlement arrangements, holding stablecoins for payments, proprietary trading and technical services that merely give access to decentralised protocols. The consultation closes on 18 November 2026 and final guidance is expected in January 2027. The regime takes effect on 25 October 2027 and the application window closes on 28 February 2027.

What it means: The UK crypto regime is nearing implementation, and the key question for many firms is simple: do I need a licence or not. The new exclusions matter a lot for technology providers, such as those building interfaces to decentralised protocols, and for businesses that use stablecoins only to complete payments. The FCA admits that the late publication of the relevant legislation created uncertainty and offers limited forbearance to affected firms, provided they submit an otherwise complete application within the deadline. At the same time it makes clear that decentralisation, smart contracts or distributed operation are not enough on their own to exclude an activity; what matters is who actually provides the service. For Greek crypto or fintech firms serving customers in the UK, MiCA does not apply there, so a separate assessment under the UK framework is needed. The 28 February 2027 deadline is crucial for those who want to keep operating without interruption. Comparing the two regimes will be essential for anyone active in both markets.

Read the original on FCA

Related service: myDATA integrations

Related stories