The UK’s Financial Conduct Authority (FCA) has finalised a major set of cryptoasset policy statements, cutting the proposed capital requirement for stablecoin issuance from 2% to 1%. This change makes the framework more proportionate while keeping the regime robust, according to the FCA. The wider crypto rules are expected to come into force in October 2027, with firms such as trading platforms, custodians, intermediaries, stablecoin issuers, and staking arrangers needing authorisation to operate in the UK.
Stablecoin Regulation
The FCA’s move from 2% to 1% suggests the regulator heard industry feedback that the original calibration could have been too demanding. The agency framed the change as a way to make the prudential framework more proportionate for larger issuers without abandoning the core protections around stablecoin issuance. For stablecoin issuers, the UK market will remain challenging, even with a 1% requirement, depending on issuance scale and reserve economics.
Regulatory Impact
The stablecoin change sits inside a much broader regime, with the FCA saying that until the new rules take effect, its crypto oversight remains limited mainly to financial promotions and anti-money laundering controls. Once the regime is live, crypto firms will need FCA authorisation across a wider set of activities, creating a runway for firms to prepare and comply. The key question now is whether the UK can turn regulatory clarity into actual market activity, as a rulebook only helps if serious firms decide to use it.
Based on reporting from crypto.news.
