UK finalises crypto regime with lower stablecoin capital coefficient
The new crypto regulatory structure brings clearer rules while keeping a strong authorisation model, potentially reshaping market structure and firm location choices.
The UK Financial Conduct Authority has finalised key parts of its new cryptoasset regime, which will bring a broad range of crypto firms into full FCA authorisation from 25 October 2027.
The regime will apply to firms carrying out regulated cryptoasset activities, including trading platforms, intermediaries, custodians, stablecoin issuers and firms arranging staking.
As part of the package, the FCA has reduced the stablecoin issuance capital requirement coefficient from 2% to 1%. The regulator said the change makes the prudential framework more proportionate for larger issuers while maintaining the robustness of the overall regime.
The FCA said the new framework moves the UK beyond the anti-money laundering and financial promotions standards that previously defined its role in crypto markets.
The policy package includes final rules and guidance on stablecoin issuance, regulated cryptoasset activities, admissions and disclosures, market abuse, prudential requirements and the application of the FCA Handbook.
Under the stablecoin rules, non-systemic UK-issued qualifying stablecoins will be subject to requirements covering issuance, backing assets, redemption, safeguarding and disclosures.
Firms will be able to apply for authorisation between 30 September 2026 and 28 February 2027, ahead of the mandatory regime taking effect in October 2027.
Why does it matter?
The FCA’s policy package marks a major shift from limited crypto oversight towards a full authorisation-based regime. For stablecoin issuers, the reduction of the K-SII coefficient from 2% to 1% shows the regulator responding to industry concerns about proportionality and competitiveness while keeping baseline prudential safeguards. The wider regime could give firms clearer rules for operating in the UK, but it will also raise compliance expectations for platforms, custodians, intermediaries and staking providers.
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