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The FCA has published a consultation paper (CP) on proposed guidance clarifying the scope of the new regulated cryptoasset activities introduced by the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (the Cryptoasset Regulations). The consultation closes on 3 June 2026.
From 25 October 2027, the Cryptoasset Regulations will bring new regulated activities for cryptoassets within the FCA's regulatory perimeter. Those carrying on these regulated cryptoasset activities by way of business in the UK will require FCA authorisation. Authorised firms will be subject to the rules and guidance in the FCA Handbook (once finalised).
The CP sets out the FCA's proposals to clarify the scope of the new regulated cryptoasset activities and when permission is needed, and should be considered alongside the FCA's other recent consultations on proposed rules for the new cryptoasset regime.
In addition, it aims to provide clarity for firms transitioning from the FCA's current cryptoasset regime (ie under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017) (MLRs) to the new cryptoasset activities under the Financial Services and Markets Act 2000.
The proposed guidance is prepared in a Q&A format in a new chapter in the FCA's Perimeter Guidance Manual (PERG), at PERG 19. If there are further legislative changes before the finalisation of the proposed guidance, the FCA will reflect the changes, as appropriate.
Areas covered by the proposed new guidance include when activities are carried on by way of business, territorial scope – when activities are considered to be in the UK, what constitutes new specified investments and new regulated cryptoasset activities together with corresponding exclusions, as well as consequential changes to other parts of PERG including that covering the financial promotion perimeter.
The FCA wants this to support:
- a clearer view for market participants: they should clearly understand when authorisation will be required, which permissions apply to their activities, and whether any exclusions are relevant, so reducing uncertainty and the risk of inadvertent perimeter breaches;
- effective competition: by helping firms correctly identify the permissions relevant to their business models, better ensuring the consistent regulatory treatment of firms;
- appropriate consumer protection: by supporting timely and accurate applications for authorisation, UK clients conducting regulated cryptoasset activities and accessing cryptoasset services engage with firms which are appropriately authorised; and
- fair, transparent, orderly and resilient markets: by improving firms' understanding of their regulatory obligations and supporting consistent application of the regime across market participants.
The consultation ends on 3 June 2026.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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