The UK’s Financial Conduct Authority is seeking feedback on draft guidance about cryptoasset activities that could fall outside parts of the new regulatory regime. The consultation opened October 21 and runs through November 18.
Which crypto activities may be excluded
The draft addresses possible exclusions involving temporary settlement arrangements, qualifying stablecoin holdings used for payments, some backing-asset arrangements, proprietary trading in specified cases and technical services connecting users to third-party services or decentralised protocols. Each exclusion depends on specific legal conditions; the proposals do not create a blanket exemption for decentralised technology.
The FCA says the broader UK cryptoasset regime is planned to begin on October 25, 2027. The application period for existing crypto businesses opened on September 30, 2026, and is scheduled to close on February 28, 2027. The regulator expects to publish final guidance in January 2027.
How the FCA consultation will proceed
The FCA’s CP26/36 consultation says the broader UK regime is scheduled to cover new regulated cryptoasset activities from October 25, 2027. Firms with an existing UK crypto business seeking permission for newly regulated work face a separate application window, which opened September 30, 2026 and is due to close February 28, 2027.
The regulator aims to publish final guidance in January 2027. It also describes limited flexibility for businesses whose ability to complete an application was affected by uncertainty over the technical-services exclusion. That is not a general extension for every applicant. Companies should check the precise activity they carry out before assuming an exclusion applies.
The consultation is not final guidance. Firms should assess their activities individually, continue following current requirements and monitor official FCA updates. EU policymakers are addressing related questions in separate proposals to revise MiCA.
Primary source
FCA consultation paper CP26/36 on cryptoasset perimeter guidance.
Related Reading
For comparison with EU regulatory discussions, see our coverage of France’s proposed MiCA safeguards and ESMA guidance on safeguarding crypto client funds.
This report summarises a consultation and is not legal advice.
