UK Unveils Final Crypto Rulebook as FCA Cuts Stablecoin Capital Floor

The U.K.’s Financial Conduct Authority (FCA) published its final cryptoasset rulebook on June 30, lowering the capital floor for stablecoin issuers to 1% of issued value as it set an October 2027 deadline for firms to win authorization. The framework, covering exchanges, custodians, stablecoin issuers, staking and lending services, brings cryptoassets into a full authorization regime for the first time under the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026.

The regulator reduced the capital coefficient for stablecoin issuance to 1% from the previously proposed 2%, easing a major industry concern that higher capital requirements could make the UK uncompetitive against rival jurisdictions like the European Union’s MiCA regime and the United States. Issuers must hold capital as a buffer against losses, and the new lower threshold is seen as an effort to keep London viable for stablecoin business.

The rules also require stablecoin issuers to meet authorization thresholds, hold backing assets, and provide clear redemption rights to holders. Market-abuse controls, modeled on traditional securities rules, are included to prevent manipulative behavior.

Firms can apply for authorization between September 30, 2026, and February 28, 2027. The regime formally takes effect on October 25, 2027. Exchanges, custodians, stablecoin issuers, staking providers, lending and borrowing platforms, and certain decentralized finance (DeFi) operators with an identifiable controlling entity must be authorized to serve UK customers. By including DeFi services under the regime, the FCA has extended its reach into parts of the onchain economy.

The October 2027 deadline gives firms a clear timeline, but those that miss the authorization window risk being shut out of one of the world’s largest financial centers. The lighter stablecoin treatment is seen as an effort to prevent issuers from routing operations through MiCA-licensed entities in Europe rather than seeking a UK license. The package offers certainty after years of regulatory limbo, and the UK’s competitiveness in the global crypto market will be measured by how many firms seek authorization.

Source: https://news.bitcoin.com/uk-fca-final-crypto-framework-stablecoin-capital/