UK FCA cryptoasset - mapping the regime
The FCA produced five policy statements and three finalised guidance papers - running to over 1,000 pages of content. Whilst the FCA did produce a summary page, for our own benefit, we have also mapped out the papers, where they came from and roughly what they cover. In case this is helpful ( not everything is relevant to every player in this space), we thought it would be worth sharing!
Full briefing coming soon.
| Paper | Relevant consultation paper(s) | Topics covered | FCA rules |
|---|---|---|---|
| PS26/9 - Admissions & Disclosures and Market Abuse Regime for Cryptoassets | CP25/41 | Admissions and disclosures for admission to trading of qualifying cryptoassets on a UK QCATP Market abuse regime for cryptoassets (MARC) | CRYPTO 3 (Admission of qualifying cryptoassets to trading on a UK QCATP and offers to the public of qualifying cryptoassets admitted to trading) CRYPTO 4 (Cryptoasset Market Abuse) |
| PS26/10 – Stablecoin issuance | CP25/14 | Backing assets Segregation and the statutory trust Requiring an unconnected third party to safeguard qualifying stablecoin backing assets Record‑keeping and reconciliations Redemptions Appointing third parties to carry out one or more parts of the issuance activity Public disclosures Passing back interest and income on backing assets Multi-currency stablecoins | CASS 16 (stablecoin backing assets) CRYPTO 2 (stablecoins) |
| PS26/11 – regulated cryptoasset activities | Cryptoasset trading platforms Cryptoasset intermediaries (including best execution) Pre- and post-trade transparency Record keeping and client reporting Lending and borrowing Safeguarding Staking DeFi | CRYPTO 5 (execution and orders) CRYPTO 6 (cryptoasset trading platforms) CRYPTO 7 (transparency) CRYPTO 8 (record keeping and reporting: client orders and transactions) CRYPTO 9 (cryptoasset lending and borrowing) CRYPTO 10 (qualifying cryptoasset staking) CASS 17 (cryptoasset safeguarding rules) (plus some changes to CASS 6) | |
| PS26/12 – a prudential regime for cryptoasset firms | Own funds – definition and composition of capital Own funds requirements Concentration risk Liquid assets requirement (concepts of BLAR and ILAR) Overall risk assessment Public disclosure of prudential information | COREPRU (the new Core Prudential Sourcebook) CRYPTOPRU (the prudential sourcebook for CRYPTOPRU firms)
Also note consultations on non-handbook guidance (closing end of July) for: | |
| PS26/13 - application of FCA Handbook for regulated cryptoasset activities | Approach to international cryptoasset firms Consumer Duty Designated Investment Business Amendment Feedback on SYSC, SM&CR, operational Resilience and Financial Crime requirements COBS ESG Dispute resolution and compensation Regulatory reporting | Amendments made to:
| |
| FG26/5 – application of the Consumer Duty to cryptoasset firms | GC26/2 | Finalised guidance on how firms involved in cryptoasset activities should apply the Consumer Duty | N/A |
| FG26/6 – guidance on cryptoasset operational resilience | - | Finalised guidance designed to help cryptoasset firms implement the FCA’s operational resilience requirements (SYSC 15A), with reference to the outsourcing provisions under SYSC 8. | N/A |
| FG26/7 – approach to international cryptoasset firms | - | Finalised guidance on how the FCA will assess international firms – including setting out the exceptions the FCA might accept in relation to provision of cryptoasset services through a branch. | N/A |
This is a significant milestone for the FCA, for the industry, and for the millions of consumers who engage with firms providing cryptoassets services. It represents the culmination of more than 3 years of intensive work: listening to industry, engaging with consumers, collaborating with international partners, and carefully designing a framework that is proportionate and outcomes-focused.https://www.fca.org.uk/publications/policy-statements/cryptoasset-regime
