Financial Regulation - In The Know: Payments

Regulation of cryptossets in the UK is picking up speed and providing the long-awaited clarity for the regulation of this sector. This commenced with the HM Treasury (HMT) publishing a near-final draft of the Financial Services and Markets Act 2000 (Regulated Activities and Miscellaneous Provisions) (Cryptoassets) Order 2025, together with a policy note on 29 April 2025. Under the new rules, firms carrying out the new cryptoasset regulated activities in respect of the new types of cryptoasset specified investments will be brought into the regulatory perimeter.

This was followed by the publication from the Financial Conduct Authority (FCA) of its discussion paper (DP25/1) outlining its proposals for regulating various cryptoasset activities in the UK and two further consultations on the proposed conduct and prudential requirements for firms carrying on the regulated activities of issuing qualifying stablecoins and safeguarding qualifying cryptoassets including