Find out about, the Treasury’s proposed new cryptoasset regulated activities, the Financial Services and Markets Act 2000 (FSMA) and the FCA Handbook.
We recognise that for most cryptoasset firms this will be the first time they will be regulated by us under FSMA. This page sets out information about the legislative framework, our expectations of firms and individuals as well as information about the regulatory regime.
Our role
We regulate financial services firms in the UK, setting standards for firms to meet and holding them to account if they don't. This will include cryptoasset firms operating under the new regime.
Our work helps underpin the UK’s reputation as a leading global financial centre – one where consumers are well served and firms can operate and innovate with clarity and certainty.
Read further information about our role.
FSMA
FSMA is a key part of the UK's legislative framework for financial services regulation. FSMA and related secondary legislation define the 'regulatory perimeter' by setting out the activities and entities that fall within the scope of UK financial services regulation.
Regulated activities
The activities we regulate are primarily set out in The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (as amended) (RAO). These 'regulated activities' require our authorisation before firms or individuals can carry them out.
The Treasury’s draft Statutory Instrument proposes to create a number of new regulated cryptoasset activities which will be added to the RAO:
- Issuing qualifying stablecoin in the United Kingdom.
- Safeguarding of qualifying cryptoassets and relevant specified investment cryptoassets.
- Arranging for another person to safeguard qualifying cryptoassets or relevant specified investment cryptoassets.
- Operating a qualifying cryptoassets trading platform.
- Dealing in qualifying cryptoassets as principal.
- Dealing in qualifying cryptoassets as agent.
- Arranging (bringing about) deals in qualifying cryptoassets.
- Making arrangements with a view to transactions in qualifying cryptoassets.
- Qualifying cryptoasset staking.
Cryptoasset firms providing, or planning to provide, cryptoasset services in or to the UK should consider familiarising themselves with the RAO and the Treasury’s draft Statutory Instrument.
FCA Handbook
The Handbook sets out rules and guidance we have made using our rulemaking powers under FSMA. The Handbook is divided into a number of sourcebooks, each with a name, covering specific topics.
There is a guide to the structure of the Handbook and we have published a Reader’s Guide by way of an introduction to the Handbook.
It is also our intention to create a new cryptoasset sourcebook setting out our new rules for cryptoasset firms. We also intend to include a table that sets out how other sourcebooks will apply to cryptoasset firms. We hope that this will help cryptoasset firms navigate the Handbook.
Cryptoasset firms that think they will be in scope of the new regime should consider familiarising themselves with our Handbook.
Further information
There is further information on our website and cryptoasset firms that think they will be within the scope of the new regime may wish to consider seeking independent legal/compliance advice as part of their preparations for the new regime.
