UK Exempts Stablecoin Payments from Crypto Licensing Requirements
The UK's Financial Conduct Authority (FCA) has published final guidance on which crypto activities require its authorization, effective October 25, 2027. The new rules cover a range of activities, including issuing qualifying stablecoins, operating trading platforms, and dealing in cryptocurrencies.
However, HM Treasury has drafted amendments that would exempt UK-issued stablecoin payments from the licensing requirements for dealing and arranging activities. This means that firms will not need to obtain permission to process transactions in these stablecoins.
The FCA is allowing existing registrations and permissions to remain in place until February 28, 2027, when the application window closes. The regulator is urging firms to prepare for the new rules by understanding how they apply to their business.