United Kingdom: crypto & digital assets regulation

Who regulates

• Financial Conduct Authority

  Primary supervisor for cryptoasset firms, covering conduct, prudential standards, and AML supervision.

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• Bank of England

  Oversight of stablecoins, wholesale tokenisation, and central bank digital currency (digital pound) development.

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Core laws & rules

• Financial Services and Markets Act 2000 (2000)

  The core legislative framework under which the FCA regulates cryptoasset firms, including stablecoin issuance, custodial services, trading, and staking.

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Licensing & registration

• Cryptoasset Firm Registration/Licensing

  Firms conducting regulated cryptoasset activities must register with or be authorised by the FCA. The regime covers stablecoin issuance, custodial services, trading, and staking, with specific rules for client assets and prudential resilience.

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• AML Registration

  Cryptoasset businesses are supervised for anti-money laundering compliance, with specific fee structures for registration and periodic supervision. Timeline: January 10, 2020

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Restrictions & warnings

• Ban on the sale of cryptoasset investment products to retail clients.

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• Strict financial promotion rules for cryptoassets to ensure clarity and prevent consumer harm.

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• Stablecoin backing funds are subject to Client Assets sourcebook (CASS 16) rather than CASS 7, with professional client opt-outs disapplied.

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Direction of travel

• Joint FCA and BoE vision to accelerate tokenisation in UK wholesale markets, with regulatory feedback sought by July 2026.

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• Development of the digital pound with provisional holding limits of £10–20k and tiered remuneration to mitigate deposit disintermediation.

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• Implementation of a new prudential regime for cryptoasset firms to ensure financial stability and resilience.

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Sources

1. Overview of the FCA's Cryptoassets Regime Policy Statements · 2026-06-26
2. CP26/13: Cryptoasset perimeter guidance · 2026-04-13
3. CP26/8: Quarterly consultation paper No. 51 · 2026-02-26
4. CP26/4: Application of FCA Handbook for Regulated Cryptoasset Activities II · 2026-01-21
5. CP25/42: A prudential regime for cryptoasset firms · 2025-12-12
6. CP25/41: Regulating cryptoassets: Admissions & disclosures and market abuse regime for cryptoassets · 2025-12-11
7. CP25/33: Regulatory fees and levies: policy proposals for 2026/27 · 2025-11-19
8. CP25/25: Application of FCA Handbook for Regulated Cryptoasset Activities · 2025-09-16
9. PS23/6: Financial promotion rules for cryptoassets · 2023-06-07
10. FCA Consultation on Recovery of Costs for Supervising Cryptoasset Businesses under AML Regulations · 2019-10-14
11. PS20/10: Prohibiting the sale to retail clients of investment products that reference cryptoassets · 2019-07-02
12. PS19/22: Guidance on Cryptoassets · 2019-01-22
13. FS17/4: Distributed ledger technology · 2017-04-07
14. Letter from the Governor to Joe Powell MP · 2026-07-08
15. Minutes of the London FXJSC Legal Sub Committee Meeting – 17 March 2026 · 2026-07-02
16. FCA and Bank of England set out shared vision for tokenisation in UK wholesale markets · 2026-05-18
17. Minutes: CBDC Academic Advisory Group – January 2026 · 2026-04-02
18. PS24/12: Digital Securities Sandbox Joint Policy Statement and Final Guidance · 2024-04-02