meta_id 3281779

On June 25, 2026, the Financial Conduct Authority (FCA) published Policy Statement PS26/11, which sets out final rules and guidance for regulated cryptoasset activities. This represents the culmination of the FCA's consultation process on the new cryptoasset regulatory framework, which came into force on October 25, 2027. The policy statement covers eight core cryptoasset activities: operating qualifying cryptoasset trading platforms (QCATPs), dealing in qualifying cryptoassets as principal or agent, arranging deals in qualifying cryptoassets, safeguarding cryptoassets, arranging cryptoasset safeguarding, cryptoasset lending and borrowing, and arranging qualifying cryptoasset staking. The FCA has implemented targeted amendments to its original proposals following consultation feedback, while retaining the overall framework. Key changes include removing principal dealers from pre-trade transparency requirements, clarifying best execution expectations to permit flexible arrangements rather than mechanical transaction-by-transaction checks, and introducing a 2 percent settlement float limit for UK QCATPs (increased from the originally proposed 1 percent). The FCA confirmed that retail protections apply to cryptoasset lending, borrowing, and staking services, with mandatory over-collateralisation requirements and negative balance protection for retail clients engaging in cryptoasset borrowing. For decentralised finance (DeFi), the FCA confirmed its approach that rules apply where an identifiable controlling entity exists. The cost-benefit analysis estimates total costs to firms at £920 million over a ten-year appraisal period, with quantified benefits to consumers estimated at £1.14 billion, primarily through reduced custody failures and improved regulatory protections. The FCA intends to monitor outcomes of the regime and conduct an evaluation at a future date.