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New UK Crypto Rules Incoming

New UK Crypto Rules Incoming

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

What are the two new FCA discussion papers?

๐Ÿ“„ CP25/14 outlines standards for stablecoin issuance and cryptoasset custodyโ€”backed reserves, daily redemptions, and strong segregation rules.

๐Ÿ“„ CP25/15 proposes a prudential regimeโ€”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 standardsโ€”inviting industry input before final rules go live.
๐Ÿ—“๏ธ Feedback open until 31 July 2025
โ€

๐Ÿ’ก๐—ช๐—ต๐—ฎ๐˜ ๐—ถ๐˜ ๐—ฐ๐—ผ๐˜‚๐—น๐—ฑ ๐—บ๐—ฒ๐—ฎ๐—ป ๐—ณ๐—ผ๐—ฟ ๐—ฐ๐—ฟ๐˜†๐—ฝ๐˜๐—ผ ๐—ฏ๐˜‚๐˜€๐—ถ๐—ป๐—ฒ๐˜€๐˜€๐—ฒ๐˜€?

๐Ÿ“Œ ๐—ก๐—ฒ๐—ฒ๐—ฑ ๐˜๐—ผ ๐—ฃ๐—ฟ๐—ฒ๐—ฝ๐—ฎ๐—ฟ๐—ฒ ๐—ณ๐—ผ๐—ฟ ๐—™๐˜‚๐—น๐—น ๐—Ÿ๐—ถ๐—ฐ๐—ฒ๐—ป๐˜€๐—ถ๐—ป๐—ด Crypto-registered firms may soon need to meet more stringent standards similar to those of traditional financial institutions.

๐Ÿ“Œ ๐—˜๐˜…๐—ฝ๐—ฎ๐—ป๐—ฑ๐—ฒ๐—ฑ ๐—ฆ๐—ฐ๐—ผ๐—ฝ๐—ฒMany business models not previously coveredโ€”like stablecoin issuance, staking services, lending/borrowing, and certain DeFi interactionsโ€”are now in the FCAโ€™s sights.

๐Ÿ‘‰ If you operate in these areas, proactive engagement with the consultation is key.
๐˜๐˜ญ๐˜ญ๐˜ถ๐˜ด๐˜ต๐˜ณ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜จ๐˜ฆ๐˜ฏ๐˜ฆ๐˜ณ๐˜ข๐˜ต๐˜ฆ๐˜ฅ ๐˜ฃ๐˜บ ๐˜Ž๐˜ฆ๐˜ฎ๐˜ช๐˜ฏ๐˜ช

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Published on 10.07.2025

Written by  

Melchior de Villeneuve

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