FCA Issues Perimeter Guidance on Regulated Cryptoasset Activities Ahead of October 2027 Regime Start

Key Takeaways

• The FCA's Instrument 2026/55 amends the Perimeter Guidance manual (PERG) to explain which cryptoasset activities will require authorization in the UK, and adds a cross-reference to CRYPTOPRU.
• Part 1 took effect on 16 September 2026, and the remainder takes effect on 25 October 2027.
• Firms should use the intervening period to assess their perimeter position and permissions.

Deep Dive

The FCA's Instrument 2026/55 amends the Perimeter Guidance manual (PERG) to explain which cryptoasset activities will require authorization in the UK, and adds a cross-reference to CRYPTOPRU. Part 1 took effect on 16 September 2026, and the remainder takes effect on 25 October 2027. Firms should use the intervening period to assess their perimeter position and permissions.

The instrument is made under FSMA section 139A. Annex A makes a minor amendment to CRYPTOPRU, adding a placeholder cross-reference ("to follow") to PERG 18.6.6 on settlement of spot qualifying cryptoasset transactions in the K-CCD guidance. Annex B amends PERG, the main change. It integrates guidance on eight regulated cryptoasset activities: issuing a qualifying stablecoin; safeguarding cryptoassets; arranging cryptoasset safeguarding; operating a qualifying CATP; dealing in qualifying cryptoassets as principal; dealing as agent; arranging deals (including making arrangements with a view to transactions); and arranging qualifying cryptoasset staking. The substantive guidance sits in the new PERG 18, which is not reproduced in the excerpt provided. This analysis is therefore limited to the amendments to PERG 1, 2 and the related annexes, and the full instrument (101 pages) should be reviewed.

The business element applies to all regulated cryptoasset activities. The overseas persons exclusion does not apply to them, so non-UK firms cannot rely on it and must analyze territorial reach under FSMA section 418. The sixth to eighth "in the United Kingdom" cases cover stablecoin issuance, CATP and dealing/arranging activity involving consumers, and safeguarding or staking arrangements carried on for consumers. Advising on investments does not extend to qualifying cryptoassets, and managing investments is not introduced as a cryptoasset activity, though it remains relevant to specified investment cryptoassets. Exclusions for UCITS/AIF managers and insolvency practitioners are extended to these activities. The Non-Exempt Activities Order bars professional firms from carrying on stablecoin issuance, principal dealing and staking arrangement without authorization.

Part 1 (the introductory PERG changes) applies from 16 September 2026. The remainder applies from 25 October 2027, immediately after the Cryptoassets (COREPRU and CRYPTOPRU) Instrument 2026 (FCA 2026/45). From that date, safeguarding and administering investments is no longer the relevant activity for specified investment cryptoassets and is replaced by safeguarding cryptoassets (article 9N). Firms with existing article 40 permissions will need a variation of permission.

Recommended actions:

(1) Map all cryptoasset products and services against the PERG 18 decision tree and the eight activities.

(2) Identify needed permission variations or new applications, and plan for the lead time.

(3) Overseas firms serving UK consumers should document their section 418 analysis and consider UK authorization.

(4) Check the interaction with prudential requirements under FCA 2026/45 and CRYPTOPRU.

(5) Update policies, client documentation and governance for in-scope activities.

Carrying on a regulated activity without authorization is a criminal offense under the general prohibition, and unauthorized promotion and contract enforceability risks follow. Misclassifying a token as a qualifying cryptoasset or a specified investment cryptoasset could leave a firm under the wrong regime. Late permission applications could force firms to halt UK activity at commencement.

Source: Financial Conduct Authority