UK FCA Publishes Crypto Asset Regulatory Framework With Rules for Overseas Platforms and Stablecoins

The UK Financial Conduct Authority (FCA) this week formally published a crypto-asset regulatory framework that allows overseas trading platforms to serve UK users through locally authorized branches and connect to global trading infrastructure. According to Odaily, the framework is widely described by the industry as emphasizing access to global liquidity, though its implementation is expected to face significant compliance and approval challenges. Under the new rules, the FCA’s approach is intended to avoid creating a closed domestic liquidity pool. The framework also permits stablecoins issued outside the UK to circulate in the UK market, a stance described as differing from the European Union’s Markets in Crypto-Assets (MiCA) model. The rules introduce a “Qualified Cryptoasset Trading Platform” (QCATP) mechanism, which is viewed as a key structure linking global exchanges with the UK market and is expected by some industry participants to improve price efficiency and market depth. However, industry sources said the FCA has not clarified which jurisdictions will be recognized as providing “comparable regulatory protections,” and this uncertainty may affect firms’ planning decisions. Separately, decentralized finance (DeFi)-related rules remain incomplete. Some practitioners expressed concern that early proposals could restrict centralized platforms’ access to the DeFi ecosystem, potentially leaving the UK behind other jurisdictions in related innovation. On compliance, lawyers said authorization under the new Financial Services and Markets Act framework could be highly stringent. Historical data cited by lawyers show the FCA’s anti-money laundering registration approval rate has been below 15%. The new system is also expected to cover consumer duty, capital adequacy, operational resilience, and senior management accountability, raising market entry requirements. Industry participants said the framework provides an institutional basis for capital to enter the crypto market, while the UK’s positioning will depend on regulatory certainty and approval efficiency in the coming months.