FCA Closes Consultation on Stablecoin Issuance and Cryptoasset Custody Rules, UK, March 2026

The Financial Conduct Authority closed consultation paper CP25/14, Stablecoin Issuance and Cryptoasset Custody, on 31 March 2026. The consultation proposed rules governing two regulated activities: issuing qualifying stablecoins and safeguarding qualifying cryptoassets, including stablecoins. The proposals sit within the FCA's phased crypto regulation roadmap and were published alongside consultation paper CP25/15, which sets out proposed prudential requirements for qualifying stablecoin issuers and cryptoasset custodians.

The proposed rules draw authority from the forthcoming statutory provisions published by HM Treasury on 29 April 2025, which create new regulated activities for cryptoassets under the Financial Services and Markets Act 2000. Under that framework, the FCA's regulatory remit over cryptoassets expands beyond the Anti-Money Laundering and Counter-Terrorist Financing supervisory role it has held since January 2020 under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs).

Firms that issue or intend to issue fiat-referenced stablecoins in the UK, cryptoasset custodians, and firms using qualifying stablecoins in retail payments or on- and off-ramping must review CP25/14. The FCA concluded that its Consumer Duty rules alone do not achieve the regulatory objectives applicable to qualifying stablecoin issuers. The proposed rules require stablecoin backing assets to be managed according to prescribed standards, and require customer-facing disclosure of how those backing assets operate. Traditional finance custodians that hold qualifying cryptoassets for clients also fall within the proposals.

The FCA stated it will publish its feedback statement and a Policy Statement by Summer 2026 after reviewing consultation responses. The FCA also committed to consulting separately on cross-cutting conduct and firm standards requirements applicable to stablecoin issuers and cryptoasset custodians. The Bank of England is developing a parallel regime for systemic stablecoins, and the FCA stated it will work closely with the Bank to ensure a clear regulatory pathway between the two regimes.

Our firm advises cryptoasset businesses, stablecoin issuers, custodians, and financial institutions on UK regulatory compliance and licensing under the evolving FCA cryptoasset regime. We maintain a dedicated network of specialist partners for UK financial regulation matters. If your firm is assessing readiness for the forthcoming cryptoasset regime, contact us. Our work in this area includes cryptoasset firm authorisation, stablecoin compliance structuring, AML/CTF advisory for virtual asset service providers, custody agreement drafting, and FCA registration and notification requirements.

Source: Financial Conduct Authority, CP25/14: Stablecoin Issuance and Cryptoasset Custody, published 6 February 2026, closed 31 March 2026. https://www.fca.org.uk/publications/consultation-papers/cp25-14-stablecoin-issuance-cryptoasset-custody. Confirmed 1 April 2026.

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