Summary
The UK Financial Conduct Authority published its final rules for cryptoasset firms on June 30, halving the stablecoin capital requirement to 1% of tokens issued (down from 2%). The rules, developed jointly with the Bank of England, set the UK requirement at half the EU MiCA level. The authorization gateway opens September 30, 2026, with applications accepted until February 28, 2027, and the mandatory regime taking effect October 25, 2027. Firms can hold up to 5% cash surplus in backing pools, redemption forecasting requirements were dropped, and limited intragroup custody is allowed.
Key Facts
- Stablecoin capital coefficient cut to 1% from 2% of token value issued
- UK rate is half the EU MiCA requirement
- Authorization gateway opens September 30, 2026
- Applications accepted until February 28, 2027; mandatory regime October 25, 2027
- Up to 5% cash surplus allowed in backing asset pools
- Redemption forecasting requirement dropped
- Limited intragroup custody permitted with safeguards
- BoE joint approach: temporary 40bn issuance guardrail replaces individual holding limits
- Rules follow a year after US GENIUS Act (July 2025)
Why It Matters
The FCA's decision to halve capital requirements signals the UK's ambition to become a leading crypto hub while maintaining prudential standards. Setting the rate below MiCA creates a competitive advantage for UK-based stablecoin issuers. The rules mark the end of unregulated crypto operations in the UK, forcing firms to meet bank-grade standards on backing assets, safeguarding, and operational resilience.