UK Crypto Regulation

The UK departed from the EU before MiCAR was enacted. The result is a separate national regulatory framework for crypto-assets, administered by the FCA under FSMA 2000 as amended by the Financial Services and Markets Act 2023.

Currently, crypto-asset firms operating in the UK are registered under the MLRS 2017 AML registration regime — an anti-money laundering register, not a full authorisation framework. The UK Travel Rule entered force in September 2023 via amendment to the Money Laundering Regulations — independently of the FSMA authorisation transition. From 2027, firms providing regulated crypto-asset activities to UK persons will need full FSMA authorisation. The FCA has confirmed that MLRS registration will not automatically convert to FSMA authorisation.

In April 2026, the FCA published CP26/13 — its consultation on the regulatory perimeter for crypto-asset activities, including how the proposed FSMA framework applies to staking, lending, and DeFi interfaces. The Digital Securities Sandbox (DSS) allows firms to test settlement and trading infrastructure under a modified regulatory framework. The Property (Digital Assets etc.) Act 2025 provides UK legal recognition for digital assets as a distinct category of property — creating a clearer legal foundation for custody and enforcement actions in English law.

In June 2026, the UK Government overhauled the Money Laundering Regulations, with most provisions for financial firms coming into force on 30 June 2026. Selected cryptoasset-specific rules are staggered through 2027, creating a phased compliance timeline distinct from the FSMA authorisation transition.