The Financial Conduct Authority (FCA) has published PS26/18, providing final guidance on which cryptoasset activities will require authorisation under the UK’s new regulatory framework, taking effect on 25 October 2027.
The guidance clarifies the boundary between regulated activities and technical services, although further updates are expected to reflect recent legislative amendments.
In this article, we examine the key clarifications, the upcoming regulatory deadlines and what firms should consider when preparing for the new regime.
What Falls Within the Regulatory Perimeter?
One of the main areas addressed in PS26/18 is the distinction between technical services and regulated cryptoasset activities.
The FCA has clarified that software development does not, in itself, constitute a regulated activity. Similarly, providing information, market data, analytics or dashboards does not automatically amount to arranging deals in qualifying cryptoassets.
This is particularly relevant to technology companies and infrastructure providers supporting cryptoasset businesses. However, firms cannot rely solely on how they describe their services. The regulatory position depends on the activities they undertake and whether those activities fall within the relevant legislative definitions.
The guidance also addresses several other areas:
- Staking services: The FCA clarifies when technical services supporting staking arrangements may fall outside the regulatory perimeter. Firms must distinguish between providing infrastructure and carrying on regulated staking activities.
- Arranging and dealing: Businesses connecting customers with cryptoasset providers, facilitating transactions or acting as intermediaries should assess whether their activities require authorisation.
- Safeguarding and trading platforms: Firms providing cryptoasset custody services or operating trading platforms should consider how the new framework applies to their activities, including any relevant exclusions.
Firms operating in similar parts of the cryptoasset market may therefore face different regulatory requirements depending on their business models and the services they provide.
Key Authorisation Dates and Upcoming Changes
The FCA’s authorisation window opened on 30th September 2026, with the new cryptoasset regime taking effect on 25th October 2027. Firms seeking transitional arrangements must apply by 28th February 2027, and existing FCA permissions or Money Laundering Regulations registrations will not automatically transfer to the new regime.
However, PS26/18 does not yet reflect subsequent legislative amendments affecting proprietary trading, market making and certain technology providers. The FCA intends to consult on further changes throughout 2026, with updated guidance expected in early 2027.
Firms preparing applications may therefore need to revisit their regulatory assessments as further guidance becomes available, particularly where their activities fall close to the boundary between technical services and regulated activities.
Preparing for the New Regime
Firms should now review their business activities against the new regulatory perimeter to determine whether FCA authorisation will be required.
This includes existing cryptoasset businesses, payment and electronic money firms expanding into cryptoassets, and technology providers assessing whether their services fall within a regulatory exclusion.
Where the position is unclear, firms may wish to document their assessment, including any exclusions they intend to rely on. With further regulatory changes expected, firms should also keep their conclusions under review and consider how developments may affect their authorisation plans.
Final Thoughts
PS26/18 clarifies how the UK’s new cryptoasset regulatory framework will apply, particularly the distinction between technical services and activities that require FCA authorisation.
However, with further amendments expected, firms should remain aware of developments that may affect their regulatory status. Understanding which activities fall within the perimeter, and whether any exclusions apply, will be important as businesses prepare for the new regime.
If you have questions about how the new cryptoasset framework may affect your business or authorisation requirements, please get in touch with an API Compliance consultant using the form below.
