UK Establishes Full Cryptoasset Regulatory Regime Under FSMA 2000, February 2026

The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (SI 2026/102) came into force in the United Kingdom on 4 February 2026. The instrument was made by HM Treasury under sections 21(5), (6), (9), (10) and (15), 22(1) and (5), 71K through 71R, and 428(3) of the Financial Services and Markets Act 2000 (FSMA 2000). The Regulations bring qualifying cryptoassets within the scope of regulated activity under FSMA 2000, subjecting firms that issue, admit to trading, or operate trading platforms for qualifying cryptoassets to full FCA authorisation requirements.

SI 2026/102 inserts "qualifying cryptoasset" as a controlled activity and a new category of specified investment under the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, as amended. Regulation 6 of SI 2026/102 introduces the concept of a "qualifying cryptoasset disclosure document," analogous to a prospectus, which must be approved and published before a qualifying cryptoasset is offered to the public or admitted to trading on a qualifying cryptoasset trading platform. The person responsible for the offer — defined under Regulation 6 as the person making the offer or, where made on behalf of another, the person on whose behalf it is made — bears primary liability for disclosure document accuracy.

Cryptoasset issuers seeking to offer tokens to UK retail or professional investors must now obtain FCA authorisation or rely on a narrowly drawn exemption. Cryptoasset trading platform operators face new market-abuse obligations under Chapter 3 of SI 2026/102 governing "relevant qualifying cryptoassets." Custodians holding qualifying cryptoassets on behalf of clients must comply with client-asset segregation rules now extended to cover these instruments. Firms that marketed qualifying cryptoassets prior to 4 February 2026 and fall outside any grandfathering provision must obtain authorisation or cease regulated activity promptly.

SI 2026/102 applies to offerings made to persons in the United Kingdom, regardless of whether the issuer is incorporated in the UK. Transitional provisions allow certain pre-existing token issuances to continue under legacy arrangements for a specified run-off period. The FCA retains rule-making authority to set supplementary technical standards, conduct of business rules, and systems-and-controls requirements for authorised cryptoasset firms under FSMA 2000, Part 9A. Outstanding consultations on custody, staking, and lending of cryptoassets remain open pending additional statutory instruments.

Our firm advises clients on digital-asset regulatory matters, including FCA authorisation applications, cryptoasset disclosure documents, trading-platform licensing, and compliance programme design. We work with a dedicated partner network spanning regulatory counsel in multiple jurisdictions and invite contact to discuss your specific requirements. Our work includes cryptoasset regulation, FCA authorisation, token offering compliance, digital asset custody, cryptoasset trading platforms, FSMA 2000 compliance, qualifying cryptoasset disclosure, and AML/CTF for cryptoasset businesses.

Source: The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (SI 2026/102), made 4 February 2026, https://www.legislation.gov.uk/uksi/2026/102/made; confirmed 4 May 2026.

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