New UK Crypto Rules Incoming

Following our Conversation with Dilan Bastin about the FCA’s first Discussion Paper 25/1, this article takes a closer look at how the UK’s crypto regulatory framework is progressing with the release of the subsequent papers.

What are the two new FCA discussion papers?

📄 CP25/14 outlines standards for stablecoin issuance and cryptoasset custody—backed reserves, daily redemptions, and strong segregation rules.

📄 CP25/15 proposes a prudential regime—capital, liquidity, and risk controls for stablecoin issuers and custodians.

In a nutshell, the FCA sets clear standards: stablecoin issuers must offer daily redemptions and full asset backing held in trust. Custodians must segregate assets and ensure strong governance. New prudential rules (via COREPRU/CRYPTOPRU) require high-quality capital, with deductions for self-issued tokens. The framework scales with risk and aligns with global standards—inviting industry input before final rules go live.

🗓️ Feedback open until 31 July 2025
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💡𝗪𝗵𝗮𝘁 𝗶𝘁 𝗰𝗼𝘂𝗹𝗱 𝗺𝗲𝗮𝗻 𝗳𝗼𝗿 𝗰𝗿𝘆𝗽𝘁𝗼 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀?

📌 𝗡𝗲𝗲𝗱 𝘁𝗼 𝗣𝗿𝗲𝗽𝗮𝗿𝗲 𝗳𝗼𝗿 𝗙𝘂𝗹𝗹 𝗟𝗶𝗰𝗲𝗻𝘀𝗶𝗻𝗴 Crypto-registered firms may soon need to meet more stringent standards similar to those of traditional financial institutions.

📌 𝗘𝘅𝗽𝗮𝗻𝗱𝗲𝗱 𝗦𝗰𝗼𝗽𝗲Many business models not previously covered—like stablecoin issuance, staking services, lending/borrowing, and certain DeFi interactions—are now in the FCA’s sights.

👉 If you operate in these areas, proactive engagement with the consultation is key.
𝘐𝘭𝘭𝘶𝘴𝘵𝘳𝘢𝘵𝘪𝘰𝘯 𝘨𝘦𝘯𝘦𝘳𝘢𝘵𝘦𝘥 𝘣𝘺 𝘎𝘦𝘮𝘪𝘯𝘪