UK regulators announce tokenisation roadmap and crypto rules

The Financial Conduct Authority (FCA) and the Bank of England have announced a joint roadmap on tokenisation, scheduled for publication in November. This initiative aims to address operational weaknesses and market fragmentation in UK and European capital markets ahead of the T+1 settlement transition on October 11, 2027.

In a separate regulatory development, the FCA has finalized a framework for crypto-asset firms. Starting October 25, 2027, businesses involved in crypto trading, custody, and stablecoin issuance must obtain formal authorization. The authorization window will run from September 30, 2026, through February 28, 2027. Existing anti-money-laundering registrations will not automatically convert to this new authorization.

The new crypto rules cover trading platforms, custodians, stablecoin issuers, and certain decentralized finance businesses. The framework includes market-abuse provisions to prevent insider trading and manipulation, and mandates that trading platforms conduct due diligence and publish disclosure documents for admitted assets. For stablecoin issuers, the FCA has reduced the K-SII capital factor from 2% to 1%.