UK FCA Finalizes Crypto Framework, Mandatory Licensing to Take Effect October 25, 2027

According to The Block, the UK Financial Conduct Authority (FCA) finalized its comprehensive crypto regulatory framework on June 30, with mandatory authorization taking effect on October 25, 2027. The framework applies to crypto trading platforms, custodians, stablecoin issuers, lending and staking service providers, and certain DeFi companies with identifiable control entities. Businesses may apply for authorization between September 30, 2026, and February 28, 2027. The rules include enhanced due diligence requirements for platforms, market abuse regulations covering insider trading and market manipulation, and updated stablecoin standards with a reduced K-SII capital coefficient of 1% (down from 2%). Existing anti-money laundering registrations will not automatically convert to the new framework.
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