UK crypto rules aim for 'safe harbor' by 2026

The UK has introduced draft regulations aligning digital assets with securities law, seeking to establish the nation as a “safe harbor” for the crypto industry.

Announced on April 29 by UK Finance Minister Rachel Reeves, these plans outline a “comprehensive regulatory regime” designed to position the UK as a global leader in digital assets.

Under the proposed rules, crypto exchanges, dealers, and agents will face similar regulations as traditional financial firms, with increased transparency, consumer protection, and operational resilience.

The Financial Services and Markets Act 2000 (Cryptoassets) Order 2025 introduces six new regulated activities, including crypto trading, custody, and staking.

Instead of a light-touch approach like the EU’s Markets in Crypto-Assets (MiCA), the UK is applying comprehensive securities regulations to crypto, including capital requirements, governance standards, market abuse rules, and disclosure obligations.

Dante Disparte, chief strategy officer at Circle, stated that “the UK’s draft crypto regulations represent a meaningful step toward embracing a rules-based digital asset economy.”

Bitget exchange COO Vugar Usi Zade expressed optimism, noting that the rules clarify which activities require FCA authorisation.

The regulations require exchanges to obtain full FCA approval for crypto trading, custody, staking, and lending services to UK users, providing companies with two years to adapt their systems.

New draft regulations reclassify stablecoins as securities, requiring UK-issued fiat-backed tokens to meet strict disclosure and redemption protocols.

According to Zade, excluding stablecoins from the Electronic Money Regulations 2011 (EMRs) could slow their use for payments.

The new rules also impact territorial reach, requiring non-UK platforms serving UK retail clients to gain FCA authorisation.

The rules also give companies two years to adjust their systems, like capital and reporting.

Liquid and delegated staking services must register, while solo stakers are exempt.

Zade claimed that excluding stablecoins from the Electronic Money Regulations 2011 (EMRs), which keeps them out of the e‑money sandbox, could slow their use for payment.

The FCA plans to publish final rules sometime in 2026, with the UK regulatory regime expected to go live soon after.