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UK FSMA Crypto Framework (Developing)

United Kingdom

Effective: 2025-2026 (phased)

Comprehensive bespoke crypto regulation under Financial Services and Markets Act

licensing stablecoin

Summary

The UK is developing its own bespoke crypto regulatory framework (NOT implementing MiCA) through amendments to FSMA 2023. Phase 1 focuses on stablecoins used as payment (BoE oversight for systemic stablecoins). Phase 2 covers broader crypto activities: exchange services, custody, lending, staking, DeFi, and market abuse. The FCA currently registers crypto businesses under MLR 2017 with an ~85% rejection rate. The Digital Securities Sandbox enables DLT testing in financial market infrastructure.

Key Requirements

  • FCA registration (current: MLR 2017)
  • Financial promotions compliance (Oct 2023)
  • Stablecoin authorization (Phase 1)
  • Comprehensive CASP-style authorization (Phase 2)
  • Digital Securities Sandbox participation
  • Risk warnings on all crypto marketing
  • The UK is developing its own bespoke crypto regulatory framework (NOT implementing MiCA) through amendments to FSMA 2023. Phase 1 focuses on stablecoi

Jurisdictions Implementing This Framework

4 jurisdictions reference this framework

Last updated: 2026-04-12. View all frameworks