FCA Finalises Cryptoasset Perimeter Guidance Ahead of the New UK Regime

The Financial Conduct Authority (FCA) has published a policy statement (PS26/18) on the finalised perimeter guidance for the UK’s new regulated cryptoasset activities regime. PS26/18 sets out the FCA’s response to feedback on consultation CP26/13, and inserts a new chapter, PERG 18, into the FCA’s Perimeter Guidance Manual (PERG).

Background

The guidance addresses how the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (Cryptoasset Regulations) extend the FCA’s perimeter, and when firms will require authorisation as a result. From 25 October 2027, the Cryptoasset Regulations introduce new regulated activities for cryptoassets, and anyone carrying on those activities by way of business in the UK will need FCA authorisation unless a relevant exemption applies or they can rely on the savings or transitional provisions. The FCA confirms that its core cryptoasset regime, settled in the rules and guidance published on 30 June 2026 in PS26/9 to PS26/13, remains unchanged.

Scope of the New Regulated Cryptoasset Activities

The Cryptoasset Regulations introduce a new category of specified investment, the “qualifying cryptoasset” (which includes, as a subset, qualifying stablecoins). PERG 18 confirms that a qualifying cryptoasset must be fungible, transferable and not solely a record of value or contractual rights in order to be within the scope of the new regime and includes a discussion of each of the three elements. 

PERG 18 includes questions and answers on each of the new regulated cryptoasset activities, including the following:

• issuing qualifying stablecoins (article 9M), in relation to which the FCA confirms that products using hybrid stabilisation mechanisms (such as part backing assets and part algorithmic) are not qualifying stablecoins, and that wrapped tokens (i.e., a cryptoasset that is created or issued by reference to another asset) relating to stablecoins are not in themselves automatically qualifying stablecoins;
• operating a qualifying cryptoasset trading platform (article 9S), with the final guidance amended to align the scope of the activity with its statutory definition;
• dealing in qualifying cryptoassets as principal or agent, and arranging deals in qualifying cryptoassets (articles 9T, 9W and 9Y), which mirror the equivalent existing Regulated Activities Order activities but attract different exclusions; and
• arranging qualifying cryptoasset staking (article 9Z6), with the FCA confirming that the provision of information or analytics alone is unlikely to amount to the activity.

Business Test and Territorial Scope

PERG 18 also confirms that the Cryptoasset Regulations apply a narrower “by way of business” test than that applying to regulated activities generally, such that a person is only caught where they carry on the business of engaging in one or more of the new activities in their own right rather than merely occurring in the course of other activities. PERG 18 also discusses the territorial scope of the regime, whereby services provided to UK consumers from overseas may be treated as “carried on in the UK”, with no Overseas Persons Exclusion available for the new activities.

Timeline and Next Steps

The authorisation gateway opens on 30 September 2026, with the regime commencing on 25 October 2027. Existing authorisations and registrations will not convert automatically. 

Following the Government’s laying of a statutory instrument making targeted amendments to the Cryptoasset Regulations, the FCA intends to consult in early Q4 2026 on further amendments to PERG and to publish final amended guidance in early 2027.

PS26/18 is available here. 

Our previous coverage of the UK cryptoasset regime is available here and here.