FCA proposes clearer UK crypto regulations

The Financial Conduct Authority has opened a fresh consultation on how Britain’s coming crypto regime will work in practice, publishing draft guidance intended to help firms work out whether their activities fall inside the regulatory perimeter and what permissions they will need. The paper is meant to make the transition from the current anti-money laundering registration regime to the new Financial Services and Markets Act framework less uncertain for businesses preparing for authorisation.

New perimeter guidance to clarify regulated activities

At the centre of the proposal is a new chapter in the FCA’s Perimeter Guidance Manual, which would spell out how to assess whether a crypto business is carrying on a regulated activity, how the new specified investments regime applies, and where common exclusions may still bite. The watchdog says the draft is designed to reduce the risk that firms stray into regulated territory without realising it, while also limiting the number that remain reliant on temporary savings provisions because they delayed seeking the right permissions.

Alignment with Treasury approach on AML registration

According to the FCA, the guidance also reflects HM Treasury’s position that firms authorised under FSMA will not need separate registration as cryptoasset exchange providers or custodian wallet providers under the money laundering rules, although they will still have to meet those obligations and notify the regulator. The consultation is part of a wider build-out of the UK’s future crypto framework, following earlier papers on trading platforms, intermediaries, staking, decentralised finance and the application of existing handbook rules to crypto firms.

Timeline set for feedback and implementation

The regulator said it is seeking views on the draft by 3 June and expects to publish final guidance in September. It has also said that crypto firms should be able to begin applying for authorisation from September 2026, as it continues to argue that a more structured regime can support market integrity, consumer protection, innovation and competition at the same time.

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