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The UK Treasury has finalised the Financial Services and Markets Act 2000 (Cryptoassets) (Miscellaneous Amendments) Regulations 2026, making important changes ahead of the new UK cryptoasset regime coming into force on 27 October 2027. This update will be particularly relevant for cryptoasset issuers, payments firms, stablecoin providers, exchanges and intermediaries. Key developments include an expanded framework for UK authorised stablecoins, new exclusions that allow stablecoins to be transferred, exchanged and used as collateral without triggering authorisation requirements in certain circumstances, and additional exemptions for qualifying cryptoasset financial promotions. Firms involved in cryptoasset activities should now review how the revised regime affects their business models, authorisation requirements and promotional activities, and begin preparing for implementation ahead of the go-live date.
Final regulations replace earlier cryptoasset proposals
On 15 September 2026, the Treasury laid the final version of the Financial Services and Markets Act 2000 (Cryptoassets) (Miscellaneous Amendments) Regulations 2026 (Crypto Amendment SI). This replaces the earlier draft of the (Cryptoassets) (Amendment) Regulations 2026 published on 21 April 2026 and makes certain changes to the Financial Services and Markets Act (Cryptoassets) Regulations 2026 (Cryptoasset Regulations).
Most of what was previously consulted on survives. The significant developments are an extended package of provisions for UK authorised stablecoins, including a single defined term, exclusions that enable stablecoins to be moved, exchanged and used as collateral without triggering authorisation, with carve-outs that prevent issuers and payments firms being caught by the safeguarding regimes.
There are also several new exclusions for intermediaries and financial promotions exemptions for qualifying cryptoassets.
Separately, the FCA has produced a final version of its PERG guidance on the new cryptoasset activities. These will be considered in a separate briefing, and do not, at this stage, cover the changes in the Crypto Amendment SI discussed below. The FCA expects to consult on further changes to PERG in early Q4 2026 with final amended guidance published in early 2027.
1. Commencement and process
- Amendments to the Regulated Activities Order (RAO) and the Financial Promotions Order (FPO) discussed below will take effect at the go-live of the UK cryptoasset regime on 27 October 2027.
- Provisions distinguishing qualifying stablecoin arrangements and (i) e-money, (ii) collective investment schemes, and (iii) alternative investment funds come into force 21 days after the new regulations are passed, rather than 30 days previously proposed. The Electronic Money Regulation 2011 amendments have also been added to the early commencement list.
2. Facilitating stablecoin transactions
- Terminology: The previous terminology of a "relevant qualifying stablecoin" to refer to a UK-authorised stablecoin is now "UK qualifying stablecoin".
Exemptions from safeguarding:
- The exemption from safeguarding of qualifying cryptoassets where a UK qualifying cryptoasset is held temporarily to facilitate settlement remains, however it has been limited to qualifying cryptoassets and no longer excepts such transactions involving tokenised securities.
- A new exemption from safeguarding has been introduced for UK qualifying stablecoins held temporarily in connection with the execution of payments. This is matched by a corresponding exemption from the Financial Promotions rules.
- Holding backing assets: The issuer of a qualifying stablecoin holding the reserve backing assets for its own qualifying stablecoin is now expressly exempt from both the existing safeguarding requirements and the new requirements relating to the safeguarding of qualifying cryptoassets. There is a corresponding exemption from the Financial Promotions rules.
- Transfers and exchanges: The exclusions for transfers of UK qualifying stablecoins and exchanges of UK qualifying stablecoin for other assets from dealing as principal, dealing as agent and arranging deals in qualifying cryptoassets are as consulted on, as is the position that exchanging stablecoins into other cryptoassets remains in scope.
- Financing transactions: Also excluded from dealing as principal, dealing as agent and arranging deals in qualifying cryptoassets are title transfer collateral arrangements and buy-back agreements involving qualifying stablecoins. In each case, the exemption does not apply to consumer transactions or as otherwise prohibited by FCA rules. This is matched by a corresponding exemption from the Financial Promotions rules.
3. Safeguarding
Central Securities Depositaries (CSD): The exclusion for CSD arrangements has been extended from recognised CSDs to third country CSDs, with a similar exclusion added to the financial promotion regime.
4. Exclusions for intermediaries and trading firms
- Proprietary trading: The exemption from dealing in qualifying cryptoassets as principal for proprietary trading is broadly as consulted on, however it has been reframed and widened. The previous proposals turned on whether the dealing was for the purpose of providing services to a client in connection with a regulated activity carried out for that client. The new draft excludes dealing carried on otherwise than for the purpose of providing a service to another person and adds a separate limb for acting as a market maker on a qualifying cryptoasset trading platform.
- Technical services: There is a new exemption from arranging deals in qualifying cryptoassets for unauthorised persons and payment service providers who merely provide technical services that allow another person to access services provided by a third person or a decentralised protocol (provided that third person is authorised or exempt for that activity or is a decentralised protocol). There is currently no guidance on the meaning of "decentralised protocol".
5. Financial promotions
The Financial Promotion Order changes are considerably more extensive than in the previous draft.
- Market abuse and trading platforms: New exemptions cover communication required or authorised under the cryptoasset market abuse regime and communications required or permitted by the rules of authorised trading platforms, or by the FCA.
- Overseas communications: The overseas communicator exemptions are now extended to the new cryptoasset activities.
Firms across the cryptoasset sector should:
- consider the changes to the scope of the regime set out in the Crypto Amendment SI and map these against their business operations;
- consider the scope of the newly available and modified exemptions to determine the scope of regulatory permissions they will require from October 2027;
reflect these changes in their compliance programmes and FCA authorisation materials, once the window for authorisation opens on 30 September 2026.
