UK Establishes Cryptoasset Regulatory Regime Under SI 2026/102, February 2026

On 4 February 2026, the UK Treasury made and published The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (SI 2026/102), bringing into force a formal regulatory regime for cryptoassets under the Financial Services and Markets Act 2000 (FSMA 2000). The instrument came with an explanatory memorandum published on the same date and is final and effective as made. It does not require further parliamentary approval under the negative procedure applicable to secondary legislation of this type.

SI 2026/102 amends FSMA 2000 to bring cryptoasset activities within the scope of the regulated activities order and establishes conditions under which firms must obtain FCA authorisation before carrying on cryptoasset business in the United Kingdom. The instrument exercises powers conferred by section 22(2) and Schedule 2 of FSMA 2000, which allow HM Treasury to specify activities and assets as regulated by statutory instrument. The regime covers cryptoasset exchange, custody, lending, and staking activities directed at UK persons.

Cryptoasset service providers — including exchanges, custodians, and issuers of cryptoassets to UK retail and professional clients — must now apply for FCA authorisation or rely on a transitional provision if they already hold FCA registration under the Money Laundering Regulations 2017. Authorised firms must comply with FCA conduct rules, capital requirements, and disclosure obligations applicable to the relevant regulated activity. Firms operating without authorisation after the transitional window closes face criminal and civil liability under FSMA 2000 sections 19 and 23.

The instrument provides a transitional period for existing FCA-registered cryptoasset firms, allowing continued operation while a full authorisation application is pending, subject to conditions. The FCA may impose requirements or vary permissions during this period. Firms registered solely under the 2017 AML rules who do not hold FSMA 2000 authorisation must prepare full applications before the transitional window closes.

Our firm advises on FCA authorisation processes, cryptoasset regulatory structuring, and FSMA 2000 compliance for market entrants and established firms operating in the UK digital asset sector. We maintain dedicated partnership networks for licensing, compliance programme design, and regulatory engagement. Contact us to discuss how SI 2026/102 applies to your operations. Our work in this area includes: cryptoasset exchange licensing, digital asset custody structuring, token issuance compliance, staking service authorisation, and FSMA regulatory strategy.

Source: The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026, SI 2026/102, https://www.legislation.gov.uk/uksi/2026/102/contents/made, confirmed 27 March 2026.

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