FCA

The UK Financial Conduct Authority officially announced it has begun accepting authorization applications for crypto asset-related businesses, paving the way for a brand-new crypto asset regulatory framework that takes effect in 2027. The new rules will systematically cover crypto trading, custody, and advisory services for the first time, positioning the UK to become one of the few major markets in the world to implement comprehensive licensing regulation for crypto assets, with demonstration value for both European and U.S. regulatory paths.

The UK Financial Conduct Authority (FCA) released a consultation paper on September 13 proposing to exempt tokenized gold, tokenized precious metals and other real-world-asset tokens from fund-regulation rules under specific conditions, in a move to defend London’s position as a global hub for digital assets and tokenized real-world assets. The consultation paper recommends that tokenized real-world assets meeting specific conditions be classified as ’tokenized real-world assets’ rather than ‘collective investment schemes,’ thereby bypassing certain fund-regulation requirements including custody arrangements, investor-suitability assessments and minimum governance standards. The proposal is expected to complete public consultation in Q4 2026 and formally land in H1 2027, and is the FCA’s latest move in continuing to push an ‘innovation-friendly’ framework in digital-asset regulation.

Core Summary The UK Financial Conduct Authority (FCA) has officially released a comprehensive regulatory framework for crypto assets, covering capital requirements, stablecoin oversight, and market abuse prevention. The new rules will take effect in October 2027, marking a crucial step in UK crypto regulation aimed at providing a clear legal framework while protecting investor interests. Event Details According to The Block, this regulatory framework is the UK’s most comprehensive crypto regulation to date. The new rules contain three core components: first, setting minimum capital requirements for crypto asset service providers to ensure financial stability; second, implementing strict oversight of stablecoin issuance and operations, requiring issuers to hold sufficient reserve assets; third, extending traditional financial market anti-manipulation and anti-insider trading rules to crypto asset markets. ...