UK FCA Finalizes Crypto Rulebook, Cuts Stablecoin Capital Requirement to 1%

The UK Financial Conduct Authority has unveiled its comprehensive crypto regulatory framework, replacing the existing patchwork system with a unified authorization regime. The new rules, effective October 2027, will govern exchanges, custodians, staking services, and stablecoin issuers under stringent licensing requirements.

Market participants face a clear timeline: applications open September 2026 and close February 2027. "This regime offers both regulatory certainty and innovation space," said FCA's David Geale, emphasizing balanced oversight without eliminating crypto's inherent risks.

In a significant concession, the FCA halved capital requirements for non-systemic stablecoin issuers to 1% of circulating supply. The move follows industry complaints that the initially proposed 2% threshold would disadvantage UK firms against global competitors.