FCA Consults on New Cryptoasset Perimeter Exclusions

The Financial Conduct Authority has opened CP26/36, a consultation on guidance for new exclusions in the UK’s future cryptoasset regulatory perimeter. The consultation follows legislative amendments that affect how certain activities will be treated when the broader regime takes effect on 25 October 2027.

The FCA says the proposed guidance covers, among other areas, temporary settlement arrangements, temporary holding of UK qualifying stablecoins for payment transactions, some backing-asset arrangements, certain proprietary trading and market-making activity, and technical services that merely provide access to a third party’s service or a decentralised protocol. The consultation also addresses safeguarding arrangements involving central securities depositaries.

The regulator says firms with existing UK cryptoasset business that want to carry on new regulated activities have an application window from 30 September 2026 to 28 February 2027. It says it may allow extra time on a narrow issue involving the technical-services-provider exclusion where a firm can show that uncertainty materially affected a complete application.

Why it matters

For crypto trading platforms, brokers, market makers and proprietary desks, the perimeter determines whether an FCA permission may be required. The proposed exclusions do not remove the need to assess a business model carefully; they are guidance on how the FCA interprets the amended legislation. Firms and traders using UK-facing venues should watch how platforms describe their regulatory status and services as the 2027 start date approaches.

What to watch next

The consultation closes on 18 November 2026. The FCA says it aims to publish final guidance in January 2027 after considering responses.