UK FCA Releases Final Policy Statement on Regulated Cryptoasset Activities

The Financial Conduct Authority (FCA) has released its final policy statement on regulated cryptoasset activities in the UK. The policy, titled PS26/11, outlines the conduct rules for various types of crypto businesses, including operators of qualifying cryptoasset trading platforms (QCATPs), cryptoasset intermediaries, and lenders.

The FCA has made several key changes to its original proposals, including relaxing some requirements for QCATP operators. These changes include dropping pre-trade transparency requirements for firms dealing as principal, allowing deferred publication in certain circumstances, and exempting UK QCATPs from best execution obligations when conducting matched principal trading on their own platform.

The FCA has also clarified its stance on safeguarding, introducing targeted exceptions to trust requirements and increasing the amount of own funds that can be used to support a settlement float model. Additionally, the regulator has adopted a technology-agnostic approach to private key management and plans further engagement on tokenised asset custody and potential future CASS amendments.