UK Cryptoasset Regime Gets New Exclusions for Prop Traders and Stablecoin Transactions

The UK has laid legislation to amend its cryptoasset regulatory regime following a consultation earlier this year. The changes confirm key carve-outs for prop traders and transactions related to UK-issued qualifying stablecoins.

The Financial Services and Markets Act 2000 (Cryptoassets) (Miscellaneous Amendments) Regulations 2026 will make changes to the Cryptoasset Regulations and related legislation when it comes into force on October 25, 2027. The new exclusions include safeguarding of qualifying cryptoassets and specified investment cryptoassets, arrangements for holding UK-issued stablecoins temporarily for payment transactions, backing asset arrangements in relation to a UK-issued stablecoin, and proprietary trading.

The technical services exclusion is only available if the service provider is neither an authorised person nor a payment service provider. It also requires the underlying platform/service to be either authorised or exempt, or a decentralised protocol. The amendment regulations also update the Financial Promotions Order and Regulated Activities Order.