meta_id 3281772

On June 30, 2026, the Financial Conduct Authority (FCA) published finalised non-Handbook guidance setting out its general approach to assessing international cryptoasset firms seeking authorisation in the United Kingdom for regulated cryptoasset activities. The guidance, titled "Approach to International Cryptoasset Firms" (ACIF FG26/7), provides clarity on how the FCA will evaluate whether such firms meet minimum threshold conditions both at the point of application and on an ongoing basis. The FCA's baseline expectation is that firms requiring authorisation must carry out their regulated cryptoasset activities from a UK legal entity. However, the guidance identifies specific exceptions where overseas cryptoasset firms may operate through a UK branch, provided their home regulator maintains comparable levels of regulatory protection and requirements. The FCA identified particular concerns regarding effective supervision, appropriate resources, and client asset protection, noting that international insolvency regimes may not provide equivalent protections to UK Client Assets Sourcebook (CASS) rules and UK insolvency law. The guidance applies to firms conducting activities including issuing qualifying stablecoins, safeguarding cryptoassets, operating qualifying cryptoasset trading platforms (QCATPs), and dealing in cryptoassets. The FCA outlined three exceptions to the UK legal entity requirement: QCATP operators may use UK branches to access global liquidity and improve execution outcomes for UK customers; branch-authorised QCATP operators may obtain restricted principal dealer permissions for matched principal trading on their platforms; and such operators may hold restricted safeguarding permissions for settlement wallet operations. All applications remain subject to case-by-case assessment. The FCA intends to review this guidance periodically as cryptoasset regulatory frameworks and supervisory cooperation arrangements evolve.