- UK major crypto shift & Financial Services and Markets Act 2000
- The government launches a legislative framework to regulate cryptoassets
- This includes the issuance of stablecoins and the custody of crypto assets for clients
- Supervision will be carried out by the FCA and PRA
The UK major crypto shift & Financial Services and Markets Act 2000 introduce new rules for regulating crypto, particularly focusing on the issuance of stablecoins and the custody of crypto assets for clients. The framework will come into force following Parliamentary approval and a subsequent 21-day implementation period, with supervision carried out by the FCA and PRA.
More on the Upcoming UK Cryptoasset Framework
The UK government has now introduced the Financial Services and Markets Act 2000 (Regulated Activities and Miscellaneous Provisions) (Cryptoassets) Order 2025, which is set to cover core crypto-related activities and ensure their structured integration into the broader economy and consumer infrastructure.
The act outlines all relevant definitions, provisions, and regulatory procedures, with a particular focus on two key areas:
- Issuing qualifying stablecoins — the issuance of certain categories of stablecoins.
- Safeguarding qualifying cryptoassets — the custody of cryptoassets on behalf of clients.
However, the UK government makes it clear that this is still a draft, subject to approval by Parliament. Only after that will a 21-day period begin, at the end of which the framework will come into force.
It is expected that once implemented, the final version of these provisions will fall under the supervision of the UK’s two principal financial regulators: the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).
In addition to the draft legislative text, the government has published a Draft Policy Note on the Financial Services and Markets Act 2000 (Cryptoassets) Order 2025. While it does not carry legal force, it provides essential context and further detail on the intent and mechanics of the proposal and is likely meant to support its passage through Parliament.
Conclusion
It’s fascinating to observe a trend where, at least for now, key governments are beginning to view crypto assets as a response to political uncertainty and a pathway toward economic independence.
And as crypto enthusiasts, we’re not just watching this unfold — we’re already using these tools long before they reach the mainstream of the world’s largest economies.
