UK FCA Final Crypto Rulebook Cuts Stablecoin Capital Floor to 1%
Summary
Britain's Financial Conduct Authority unveiled its final crypto rulebook on June 30, 2026, bringing cryptoassets fully within its remit for the first time — and cutting the stablecoin issuer capital requirement from 2% to 1% of the value of stablecoins issued, after industry pushback that the original bar was too high to compete internationally.
Key Facts
- Capital requirement reduced to 1% of total stablecoin value issued (from 2% proposed).
- Regime comes into force October 2027.
- FCA also eased other proposals: more time to return funds on redemptions; removed some public-disclosure obligations; tailored exchange trading rules to crypto market structure.
- Most stablecoins fall under FCA; systemic ones (widely used for payments) move to a tougher Bank of England regime.
- Issuer rules govern sterling-denominated stablecoins only — a small fraction of the global market.
- Framed as "proportionate" vs. Trump-era crypto-friendly U.S. policy; Benoit Marzouk (BCP Technologies, tGBP) said even 1% remains challenging given likely flat U.S. requirements.
Why It Matters
The UK's first comprehensive crypto rulebook sets a concrete capital, custody, and conduct perimeter — a reference point for other jurisdictions. The 1% floor is a deliberate competitiveness lever, signaling the UK wants regulated sterling stablecoin issuance to be viable rather than driving activity offshore.