UK crypto regulation update: FCA consultation ahead of 2027 regime

UK FCA consults on crypto scope ahead of 2027 regulatory regime

The UK’s Financial Conduct Authority (FCA) has launched a further public consultation as part of its ongoing roadmap to establish a comprehensive regulatory framework for cryptoassets by October 2027.

The consultation seeks industry-wide feedback on how key digital asset activities, including stablecoin issuance, trading platforms, custody and staking should be defined within the UK’s regulatory perimeter. It marks another significant step in the UK’s transition from a largely unregulated crypto environment towards a structured and fully supervised regime.

Importantly, the FCA is inviting responses from firms, policymakers and market participants ahead of a June 2026 deadline, with authorisation applications expected to open later this year.

While the roadmap demonstrates progress, industry reaction remains mixed. Commenting on the development, Thomas Cattee, Partner and Head of White Collar Crime at Gherson, noted:

“The introduction in the UK of a crypto regulatory regime is significantly lagging behind Europe, which is more advanced in introducing a fully enforced framework. However, another slow step has been taken in the long (seemingly endless) journey to a UK crypto regulatory regime. Relevant recipients would do well to engage and take heed. Broadly speaking, it is hoped the UK will eventually not fall too far behind Europe in being seen as a place for crypto firms to do business”.

This latest consultation follows earlier legislative developments, including the extension of regulatory oversight under the Financial Services and Markets framework, and signals the FCA’s intention to progressively clarify and expand the scope of crypto regulation in the UK. 

Read more in the publications:

Coin Market – UK FCA Consults on Crypto Scope Before 2027 Regulatory Launch

The Block – UK FCA seeks fresh feedback on crypto rules ahead of October 2027 rollout

How Gherson can help

Gherson advises individuals, crypto businesses and financial institutions on navigating the UK’s evolving cryptoasset regulatory landscape. As the Financial Conduct Authority continues to develop its framework ahead of the 2027 implementation, early preparation is critical.

Our team can assist with:

• Regulatory perimeter analysis
  Assessing whether your activities (including staking, custody, trading platforms or stablecoin issuance) fall within the scope of upcoming FCA regulation.
• FCA authorisation and compliance strategy
  Supporting firms preparing for FCA registration and authorisation processes expected to open in 2026.
• Financial crime and risk advisory
  Advising on AML, sanctions exposure and financial crime risks linked to cryptoasset activities, including interaction with existing UK regulatory obligations.
• Strategic structuring and cross-border considerations
  Helping businesses align UK operations with international regulatory frameworks, particularly where divergence from EU regimes may create risk or opportunity.
• Enforcement and investigations
  Representing clients in FCA investigations, regulatory enquiries and disputes involving crypto-related compliance issues.
• Ongoing regulatory monitoring and readiness
  Providing tailored updates and practical guidance as the FCA publishes further consultations, policy statements and final rules throughout 2026–2027.

With extensive experience in white collar crime, regulatory compliance, and complex cross-border matters, Gherson is well placed to support clients operating in this rapidly developing sector.

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog.  For formal advice on the current law please do not hesitate to contact Gherson.  Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.

©Gherson 2026