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The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (SI 2026/102) have been published. They create a new regulatory regime for specified cryptoasset activities under the Financial Services and Markets Act 2000 (FSMA).
The Regulations were made on 4 February 2026 and come into force on 25 October 2027, which is when the new regime starts.
Among other things, the Regulations:
- Amend the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI 2001/544) to define the types of cryptoassets that will be regulated: qualifying cryptoassets (which includes qualifying stablecoin) and specified investment cryptoassets. The Regulations also set out which activities related to these cryptoassets are regulated activities.
- Bring in new designated activities under Part 5A of FSMA relating to offering a relevant qualifying cryptoasset to the public and admitting a cryptoasset to trading on a regulated platform. The legislation prohibits a person from making a public offer of a qualifying cryptoasset in the UK unless the offer falls within an exception in Schedule 1 of the Regulations.
- Designate activities under Part 5A of FSMA to create a market abuse framework for relevant qualifying cryptoassets. The Regulations give the FCA the power to specify activities as legitimate cryptoasset market practice to future-proof the new regime and to prevent market developments being inadvertently caught.
- Make consequential amendments to various regulations, including in particular anti-money laundering and financial promotions requirements. This reflects the new regulatory perimeter.
Part 8 of the Regulations requires HM Treasury to review the Regulations and report on its findings within five years of the Regulations coming into force, and every five years after that.
The FCA can make rules and take other steps to prepare for the new regime before the commencement date. It has announced that the application period for firms that want to undertake the new cryptoasset regulated activities will be open from 30 September 2026 to 28 February 2027.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
