The Financial Conduct Authority unveiled a softened version of its first comprehensive crypto regime, set to apply from October 2027. After industry pushback that the original draft was too heavy, the regulator cut capital buffers and scrapped a blanket public‑disclosure rule. The move aims to keep the UK competitive in a fast‑growing market.

Capital requirements for stablecoin issuers now sit at 1 % of total issuance, half the proposed level, while crypto trading firms must hold capital covering 40 % of net exposure. Smaller players and those with limited risk profiles are exempt from publishing their capital figures, easing compliance costs and encouraging new entrants.

The FCA will also relax liquidity, intragroup custody and pre‑trade transparency rules for crypto groups. Joint supervision of stablecoins with the Bank of England mirrors the EU’s MiCA framework, but the UK retains discretion over non‑systemic tokens. Regulators plan a later‑year consultation on decentralized finance, signalling a willingness to oversee automated contracts without stifling innovation.

The regulator estimates the revised regime could draw 3‑4 million new users to UK platforms, bolstering market depth and investor confidence. With 62 firms already registered for anti‑money‑laundering checks, many are expected to seek full licences under the new rules. Applications open on 30 September, giving firms a narrow window before the October 2027 launch.