On 15 September 2026, there were published a draft of The Financial Services and Markets Act 2000 (Cryptoassets) (Miscellaneous Amendments) Regulations 2026, with an explanatory memorandum.
Background
This draft instrument makes amendments to the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (S.I. 2026/102) (the Cryptoassets Regulations) and related legislation, including changes to the treatment of UK qualifying stablecoins, cryptoasset safeguarding, dealing and arranging activities and the financial promotions regime.
Summary
The draft Regulations would make the following amendments, in particular:
Amendments to the Cryptoassets Regulations
- Regulation 4(2)(a) and (b): clarify that arrangements relating to assets held as stablecoin backing assets are not treated as a collective investment scheme or alternative investment fund where the relevant statutory conditions are met, and to clarify the border between e-money and qualifying stablecoin.
- Regulation 4(5)(a)(iii): inserts a definition of “UK qualifying stablecoin” as a qualifying stablecoin issued within scope of Article 9M of the Cryptoassets Regulations, by a person with Part 4A permission to carry on the regulated activity specified by that article. The definition is used in other amendments made by this draft instrument.
- Regulation 4(5)(b)(i): clarifies the circumstances in which a person is treated as carrying on the activity of issuing a qualifying stablecoin by providing that the offering limb of that activity must be carried on from an establishment in the UK.
- Regulation 4(5)(b)(iii): excludes from the safeguarding activity in Article 9N arrangements where a qualifying cryptoasset is safeguarded temporarily to facilitate the settlement of a transaction.
- Regulation 4(5)(b)(iv): excludes from the safeguarding activity in Article 9N arrangements under which a UK qualifying stablecoin is held temporarily in connection with the execution of a payment transaction and excludes from the safeguarding activity arrangements relating to assets held for the purpose specified in Article 88G(2)(b), where the arrangements concern a UK qualifying stablecoin and are carried on by a person with Part 4A permission to issue that stablecoin.
- Regulation 4(5)(b)(v): excludes activity from Article 9N where it is carried on pursuant to arrangements relating to a relevant specified investment cryptoasset operated by a recognised central securities depository (CSD) or third country CSD in the course of operating a central securities depository.
- Regulation 4(5)(b)(vi): excludes from the activity of dealing in qualifying cryptoassets as principal activity which is not carried on for the purpose of providing a service to another person relating to the carrying on of a regulated activity on that person’s behalf.
- Regulation 4(5)(b)(viii): subject to specified conditions, excludes from the arranging activity in Article 9Y arrangements under which a person who is neither an authorised person nor a payment service provider merely provides a technical service enabling another person to access one or more services provided by one or more authorised or exempt persons or decentralised protocols.
- Regulation 4(5)(b)(xi): subject to specified exemptions, it excludes activity comprising or related to transferring a UK qualifying stablecoin to another person or exchanging it for another asset, including money or another UK qualifying stablecoin, the exclusion does not apply to a transfer or disposal subject to a right to return the stablecoin (lending or borrowing arrangements), or to an exchange for a qualifying cryptoasset other than a UK qualifying stablecoin, and also excludes certain activities involving all qualifying stablecoins received under title-transfer collateral arrangements or acquired under repurchase agreements. The latter exclusion does not apply where the original holder is a consumer or a person specified, or of a description specified, by FCA rules.
- Regulation 4(5)(b)(x): makes a consequential amendment to article 9Z10 so that its exclusion does not apply where Article 9Z10A (above) applies.
Amendments to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (the RAO)
- Regulation 2(2): excludes from the safeguarding and administering investments activity in Article 40 arrangements relating to assets held for the purpose specified in Article 88G(2)(b) in relation to a UK qualifying stablecoin, where the arrangements are carried on by a person with Part 4A permission to issue that stablecoin.
Amendments to the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (S.I. 2005/1529) (the FPO)
- Regulation 3(2): provides that the financial promotion restriction does not apply to communications required or authorised under Chapter 2 of Part 2 of the Cryptoassets Regulations, which contains the market abuse regime for qualifying cryptoassets and related instruments.
- Regulations 3(3) and 3(4): amend the overseas communication exemptions in Articles 30 and 31 of the FPO. They extend those exemptions to the relevant cryptoasset activities, including services described in paragraphs 7ZA to 7C of Schedule 1 to the FPO.
- Regulation 3(5): exempts non-real-time communications and solicited real-time communications relating to qualifying cryptoassets where the communication is required or permitted by the rules of a qualifying cryptoasset trading platform operated by a person with the relevant Part 4A permission, or by the FCA.
- Regulation 3(6): subject to specified exceptions, it exempts certain communications within the scope of dealing, arranging, or advising activities where they relate to the transfer of a UK qualifying stablecoin to another person or its exchange for another asset, including money or another UK qualifying stablecoin.
- Regulation 3(7)(a)(i): excludes from the controlled activity of arranging for another person to safeguard and administer investments arrangements relating to assets held for the purpose specified in Article 88G(2)(b) in relation to a UK qualifying stablecoin, where the arrangements are made by a person with Part 4A permission to issue that stablecoin.
- Regulation 3(7)(a)(ii): makes issuing a qualifying stablecoin a controlled activity and sets out when a person is treated as issuing such a qualifying stablecoin, in line with Article 9M, as amended by this instrument.
- Regulation 3(7)(b): specifies “qualifying stablecoin” as a controlled investment for the purposes of the financial promotions regime.
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