UK Crypto Regulations See FCA Exclude Lending as Standalone Activity

Principali approfondimenti:

• Crypto regulations will not create a standalone activity for lending or borrowing.
• The UK FCA says that lending may trigger the need for dealing, arranging, or custody permissions.
• Authorization applications open on September 30, before the regime starts in 2027.

The UK Financial Conduct Authority has clarified how crypto lending and borrowing fit within its incoming crypto regulatory framework. The FCA says neither activity will become a standalone regulated service under the new regime. Instead, firms may trigger other crypto permissions depending on how they structure transactions.

Those requirements can include dealing, arranging deals, or safeguarding cryptoassets. The clarification comes as the UK prepares to open its authorization gateway on September 30, 2026. The broader crypto regulations framework takes effect on October 25, 2027.

Crypto Regulations Map Lending Into Existing FCA Rules

Under the FCA’s perimeter guidance, qualifying crypto lending and borrowing can involve transactions that fall under other regulated activities. The regulator says these arrangements can resemble loans while still amounting to cryptoasset deals.

Notably, transferring cryptoassets in return for value may count as buying or selling under the rules. Another regulated transaction may be triggered by the reacquisition of the same or equivalent cryptoassets. Dealing requirements may also catch yield paid in qualifying crypto assets.

However, whether a firm needs to be authorized will depend on the exact nature of its role in the arrangement. The permission requirements may be different for firms acting as principal, agent, arranger, or custodian. Therefore, the FCA assesses the substance of each structure rather than relying only on product labels.

The wider guidance also covers qualifying stablecoin issuance and cryptoasset trading platforms. It addresses dealing in, arranging, and safeguarding cryptoassets, and arranging qualifying cryptoasset staking. The FCA finalized its wider crypto rules in June 2026 and issued the latest perimeter guidance before applications open.

Meanwhile, the FCA said recent legal amendments provide limited exclusions and additional clarity for some technical service providers. The regulator plans another consultation in October covering targeted changes to the perimeter guidance.

UK FCA Sets September Authorization Window

The authorization window runs from September 30, 2026, through February 28, 2027. Firms conducting regulated crypto activities must secure the relevant FCA permissions before the full regime begins.

The new framework starts on October 25, 2027, under the Financial Services and Markets Act 2000 Cryptoassets Regulations 2026. Existing registrations do not automatically convert into authorization.

Accordingly, firms already registered under money laundering rules may still need fresh authorization. Existing FCA-authorized firms may also need to vary permissions if they add regulated crypto activities.

Public consultation responses included Digital Asset, the Solana Research Institute, Circle, Fireblocks, Franklin Templeton, BNY, and other participants.

The FCA has also offered pre-application discussions and webinars as firms prepare for the new rules. David Geale, the FCA’s executive director for consumers, payments, and competition, said the guidance helps firms prepare for authorization.

UK Banks Retain Control Over Crypto Payment Limits

Separately, UK retail banks will retain discretion over payments involving crypto exchanges after the new framework takes effect. The FCA will not require banks to remove blanket restrictions on crypto-related transactions.

The Banker reported that nine of the UK’s ten largest retail banks currently block or limit crypto payments. Those restrictions can include outright blocks or transaction caps for transfers involving cryptocurrency platforms.

However, the FCA expects additional regulatory safeguards to affect how banks assess crypto-related risks. The regulator has expressed hope that firms may reconsider broad restrictions as the new framework develops.

Even so, banks will retain responsibility for their own risk appetite and payment controls. The FCA has not imposed a requirement on lenders to process payments linked to crypto exchanges.

The banking position runs alongside the wider rollout of crypto regulations rather than forming a separate authorization rule. Firms seeking FCA approval must still assess which regulated activities apply to their business models.

The FCA’s latest perimeter work also addresses technical services and staking arrangements. Government changes have introduced limited exclusions and further clarification for some providers. The regulator will consult on those targeted areas in October.

This article is for informational purposes only and does not constitute financial, investment, or legal advice. Regulatory requirements can vary by business structure, and firms should seek professional advice where necessary.

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