Following confirmation the issuing, management and transfer of cryptoassets is to be regulated, the Financial Conduct Authority has launched a consultation on its interpretation of cryptoassets activities ahead of the publication of policy statements in the summer.
In December, the government confirmed cryptocurrency would become regulated, with providers required to register with the Financial Conduct Authority (FCA) from October 2027 to bring them in line with other financial services providers.
Cryptoassets have been formally recognised as personal property in the eyes of the law, allowing them to be treated in the same way as traditional assets: passed down through inheritance and recovered by creditors during bankruptcy, and with greater protections in the event digital assets are stolen. The recently passed Property (Digital Assets etc) Act also enables the use of digital assets as collateral for loans or mortgages.
The latest consultation seeks views on how and when authorisation will be required and whether there will be any registration exclusions specifically relating to the issuing of stablecoin, operation of trading platforms, the transfer of cryptoassets, and appropriate safeguards.
Crypto firms will be able to start applying for authorisation from September 2026. Ahead of this, the FCA is providing crypto firms with support on how to apply and to understand how the future regime could work, but warns the sector remains largely unregulated except for financial promotions and financial crime purposes and should continue to be treated with caution.
