United Kingdom: crypto and stablecoin regulation (as of 1 November 2026)

As of 2026-11-01

The United Kingdom brings a broad range of cryptoasset activities, including issuing a qualifying stablecoin, within the regulatory perimeter of the Financial Conduct Authority (FCA) through the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (S.I. 2026/102), made on 4 February 2026. They came into force for preparatory purposes only in late February 2026 (21 days after they were made), and the full commencement day is 25 October 2027. The FCA published its final rules on 30 June 2026, including PS26/10 on stablecoin issuance, which come into force on 25 October 2027; the Bank of England's rules for systemic sterling stablecoins are still a draft.

This page states what the official sources say. It is not legal advice.

Status as of 1 November 2026

Status	Rule	Since / from	Source
Pending	The Cryptoassets Regulations 2026 (S.I. 2026/102), made by the Treasury on 4 February 2026 after a draft was approved by each House of Parliament. Subject to paragraph (3), they come into force on 25 October 2027, the "full commencement day"; issuing a qualifying stablecoin becomes a specified activity from that day.	25 October 2027	legislation.gov.uk
In force (preparatory purposes)	Paragraph (3) of regulation 1 brings S.I. 2026/102 into force early only for preparatory purposes: enabling the FCA to make or approve rules, give guidance, give directions and take other preparatory steps, and enabling applications for permissions and approvals under the Financial Services and Markets Act 2000, including Part 4A permissions.	Late February 2026 (21 days after the Regulations were made)	legislation.gov.uk
Pending	FCA final rules for the cryptoasset regime, including PS26/10 Stablecoin issuance (CRYPTO 2 and CASS 16 rules for UK-issued qualifying stablecoins), published 30 June 2026. PS26/10: "These instruments all come into force on 25 October 2027".	25 October 2027	FCA, FCA PS26/10
Scheduled (as stated by the FCA on 30 June 2026)	FCA application window for firms that wish to rely on the savings provisions, scheduled to open on 30 September 2026 and close on 28 February 2027. Whether it opened is not stated in the sources this page uses.	30 September 2026 to 28 February 2027	FCA
Not law	Bank of England policy statement and draft Code of Practice (rules) for systemic stablecoin issuers. Feedback was due by 22 September 2026, and the Bank intends to finalise the Code by the end of 2026.	Draft of 22 June 2026	Bank of England
Not law	Government draft SI (April 2026) proposing to exclude activities involving UK-issued qualifying stablecoins from arranging and dealing, intending to bring them under a modernised future payments regime (per the FCA).	—	FCA

Key rules

Who may issue. Issuing a qualifying stablecoin is a specified kind of activity under the Regulated Activities Order (new article 9M) from the full commencement day. A person issues a qualifying stablecoin if it offers it for sale or subscription from an establishment in the UK, the coin was created by or for it or its group, and it carries on both redemption and holding of the backing assets from a UK establishment (article 9M(2)). (legislation.gov.uk)
Definition. A qualifying stablecoin is a qualifying cryptoasset that seeks or purports to maintain a stable value in relation to a particular fiat currency, with fiat currency or other assets held for that purpose (article 88G(2)). (legislation.gov.uk)
Full backing. Under the FCA final rules, UK-issued qualifying stablecoins must be fully backed and redeemable at par. In PS26/10 the FCA is proceeding with the requirement that UK stablecoin issuers must fully back all UK-issued qualifying stablecoins from the point at which they are minted, including those they own themselves. (FCA, FCA PS26/10)
Separate backing pools. The FCA is maintaining the requirement to have separate trusts for each UK-issued qualifying stablecoin product, so that each backing asset pool is isolated. (FCA PS26/10)
Redemption. UK stablecoin issuers must redeem any amount of UK-issued qualifying stablecoin within T+1. Under the final rules the T+1 timeline starts when the issuer receives the stablecoin being redeemed in its wallet. The timeline will not apply if it would lead to a breach of the money laundering legislation. (FCA PS26/10)
No interest from the backing pool. Issuers may not pay interest or income from the backing asset pool to tokenholders (PS26/10, para 10.7). The final rules do not prohibit third parties from paying rewards to their own customers from their own account, provided no interest or income from the backing asset pool is passed on (para 10.6). (FCA PS26/10)
Systemic vs non-systemic. The Bank of England's regime covers systemic stablecoins only. Stablecoins used for non-systemic purposes, such as buying and selling cryptoassets, are supervised solely by the FCA. (Bank of England)
Systemic stablecoin backing (draft). Under the Bank of England's draft rules, up to 70% of backing may be held in interest-bearing short-term UK government debt (up from 60%), with the rest in central bank deposits. (Bank of England)
Systemic stablecoin issuance limit (draft). The draft replaces the holding limits consulted on with a temporary issuance guardrail for each systemic stablecoin, initially set at £40 billion. (Bank of England)

Timeline

Date	Event	Source
4 February 2026	S.I. 2026/102 made, after approval of the draft by each House of Parliament	legislation.gov.uk
Late February 2026	S.I. 2026/102 in force for preparatory purposes only, 21 days after it was made (regulation 1(3))	legislation.gov.uk
April 2026	Government publishes a draft SI on stablecoin arranging and dealing (per the FCA)	FCA
22 June 2026	Bank of England publishes its policy statement and draft Code of Practice for systemic stablecoin issuers	Bank of England
30 June 2026	FCA publishes its cryptoasset regime policy statements, including PS26/10 Stablecoin issuance	FCA
22 September 2026	Feedback deadline for the Bank of England draft Code	Bank of England
30 September 2026	FCA application window for firms relying on the savings provisions scheduled to open (as stated by the FCA on 30 June 2026)	FCA
End of 2026	Bank of England intends to finalise the Code of Practice	Bank of England
28 February 2027	FCA application window scheduled to close	FCA
25 October 2027	Full commencement day: the regime, including issuing qualifying stablecoins, comes into force; the FCA's cryptoasset instruments come into force the same day	legislation.gov.uk, FCA PS26/10

Not covered here

The treatment of overseas-issued stablecoins offered in the UK, the number of authorised UK stablecoin issuers (the FCA register was not read, and the issuing activity starts on 25 October 2027), the final Bank of England Code of Practice, the outcome of the April 2026 draft SI, the dates on which each House approved the draft Regulations, and whether the FCA application window opened on 30 September 2026 are not stated in the sources this page uses. The FCA said on 30 June 2026 that it will consult later in 2026 on firm failure, including distribution rules for a failed stablecoin issuer, and that further work is planned on payments use and on resolution of stablecoin issuers (FCA). It is also exploring the competition and economic implications of offering interest, and says this does not imply its position on prohibiting interest is due to change (FCA PS26/10).

Sources

Updated: 2026-11-01 · Markdown version