Executive Summary
- What’s new: On 16 September 2026, the FCA published a policy statement finalising its guidance on regulated cryptoasset activities. The policy statement largely confirms the proposals in a consultation paper published in April 2026, with minor clarifications made in response to consultation feedback.
- Why it matters: The guidance sets out the FCA’s view of the scope of the new regulated cryptoasset activities introduced by the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (the Regulations). It will be a key reference point for firms intending to apply for authorisation now that the FCA’s application window has opened.
- What to do next: Firms should consider reviewing the finalised guidance alongside the Regulations to assess whether their current or proposed activities fall within the new perimeter and, if so, finalise their applications for authorisation. Firms may also wish to request a pre-application meeting with the FCA if they are seeking authorisation.
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On 16 September 2026, the Financial Conduct Authority (FCA) published Policy Statement PS26/18 (the Policy Statement), which sets out final guidance on the scope of the new regime for cryptoassets in the UK introduced by the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (the Regulations). The Regulations come into force on 25 October 2027.
The Policy Statement follows Consultation Paper 26/13 (CP26/13) (see our 7 May 2026 client alert) and clarifies when firms will require authorisation to carry on regulated cryptoasset activities. It is intended to assist firms preparing an application to the FCA for authorisation now that the application window has opened. The window will close on 28 February 2027 for firms wishing to rely on the savings provisions.
The FCA has confirmed that its final guidance on regulated cryptoasset activities, published in new Chapter 18 of the Perimeter Guidance Manual (PERG 18), does not alter the Regulations but provides guidance to firms on its view of the regulatory perimeter and the circumstances in which authorisation is required.
The FCA has also emphasised that PERG 18 is general guidance only, and that perimeter assessments will turn on the facts of each case.
Key Clarifications to the CP26/13 Proposals
Tests for Authorisation
“By way of business” test. The FCA reaffirmed that the Regulations apply a narrower business test than that which generally applies under the Financial Services and Markets Act 2000 (FSMA). The business element is satisfied only where a person carries on the business of engaging in the relevant regulated cryptoasset activity.
More generally, it highlighted the factors relevant to assessing whether an activity is carried on by way of business, including the:
- Degree of continuity.
- Presence of a commercial element.
- Scale of the activity.
- Extent to which it is incidental to a person’s nonregulated business.
Territorial scope test. The FCA has confirmed a two-step approach to determining whether a regulated cryptoasset activity is carried on in the UK. The first step is to apply the general territorial principles under FSMA and PERG 2.4 and establish whether the person carrying on the activity is in the UK, although the client may be overseas. Where those principles do not bring the activity within scope, the second step is to consider whether any of the deeming provisions in Section 418 of FSMA apply.
The Regulations add new cases to Section 418 under which, broadly, a firm that deals in qualifying cryptoassets with UK consumers — or safeguards or stakes qualifying cryptoassets on their behalf — will be treated as carrying on that activity in the UK, unless an authorised person is interposed.
New Specified Investments
Distinction between qualifying cryptoassets and specified investment cryptoassets (SICs). In response to consultation feedback, the FCA expanded its guidance on the distinction between qualifying cryptoassets and SICs. Qualifying cryptoassets are a new category of specified investment introduced by the Regulations. A SIC is a qualifying cryptoasset that also falls within one of the existing categories of specified investment under the FSMA (Regulated Activities) Order 2001 (the RAO). The distinction is relevant to determining which regulated activities, and therefore which permissions, apply.
Regulated Cryptoasset Activities
Issuing qualifying stablecoins. The FCA clarified that products using hybrid stabilisation mechanisms (e.g., part asset-backed and part algorithmic) are not qualifying stablecoins, and that wrapped tokens relating to stablecoins are not, in themselves, automatically qualifying stablecoins.
Safeguarding and arranging safeguarding of qualifying cryptoassets and relevant specified investment cryptoassets. The FCA confirmed that whether a person carries on this activity will depend on whether it has the requisite degree of control over the relevant cryptoassets. There is no express exclusion from the safeguarding activity for technology providers. However, the exclusion in Article 9R(2) of the RAO may be applicable as it regards a person as carrying on the activity if they hold themselves out as being in the business of providing a service relating to a qualifying cryptoasset or relevant specified investment cryptoasset. The FCA also expanded its guidance on how firms may carry on the arranging activity, including where a firm does not also carry on the safeguarding activity.
Intermediary activities of dealing as principal or agent, and arranging deals in qualifying cryptoassets. The FCA noted that many respondents’ concerns related to the breadth of the arranging activity itself, which is set by legislation. However, it has expanded its guidance on the distinction between activities that amount to arranging and those that are unlikely to do so, which market participants are likely to welcome. In particular, it has expanded the guidance on services that “add value” to an arrangement, clarifying that this concept should not be applied in isolation, and indicated that information-only services are unlikely to amount to arranging.
Finally, the FCA clarified that advising on and managing qualifying cryptoassets are not new regulated activities introduced by the Regulations, although the existing activity of advising on investments may be relevant to advice on SICs.
Arranging qualifying cryptoasset staking. The FCA confirmed that providing information or analytics alone, without any further involvement in the staking of qualifying cryptoassets, is unlikely to amount to arranging qualifying cryptoasset staking.
Cryptoasset lending and borrowing. The FCA confirmed that cryptoasset lending and borrowing are not stand-alone regulated activities but will instead fall within the dealing, arranging and/or safeguarding perimeter. Whether a firm requires authorisation will therefore depend on the activities it carries on in connection with the lending or borrowing arrangement.
Anti-Money Laundering
The FCA noted that the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (the MLRs) and FSMA differ in scope and will continue to operate concurrently. A person that benefits from an exclusion under the RAO will therefore need to consider separately whether it must register under the MLRs.
The FCA will continue to engage with the Joint Money Laundering Steering Group (JMLSG) to ensure continued alignment between JMLSG guidance and PERG 18.
Next Steps
The FCA intends to consult in early Q4 2026 on further changes to PERG 18 to reflect the amending statutory instrument that the UK government has now laid before Parliament, including changes to the scope of the arranging and dealing activities, and to activities relating to UK qualifying stablecoins.
The FCA will also consult on guidance on the distinction between e-money and qualifying stablecoins, and expects to publish final amended guidance in early 2027. Additionally, the FCA intends to continue developing the wider cryptoasset regulatory framework, with further work anticipated in areas including:
- Decentralised finance
- Distributed ledger technology
- Cryptoasset derivatives
- Stablecoins
- Audit requirements
Given the general nature of PERG 18, firms with novel or complex business models should consider seeking further advice and engaging early with the FCA through its pre-application meetings.
We will continue to monitor developments and provide updates as the FCA finalises its guidance and rules.
This memorandum is provided by Skadden, Arps, Slate, Meagher & Flom LLP and its affiliates for educational and informational purposes only and is not intended and should not be construed as legal advice. This memorandum is considered advertising under applicable state laws.