The UK plans to comprehensively regulate crypto assets, with the new draft including stablecoin issuance, trading platforms, custody, and Staking services.

The UK government recently published the draft "Financial Services and Markets Act 2025 (Regulated Activities and Other Provisions) (Encryption Assets) Order," which plans to formally integrate seven key activities related to stablecoins and other qualified encryption assets into the financial regulatory system. This move marks an important step for the UK in establishing a world-class regulatory environment for encryption assets.

Seven types of encryption activities incorporated into the FCA authorization framework.

According to the draft content, if one wishes to engage in the following activities in the future, they must obtain a Part 4A permission from the UK's Financial Conduct Authority (FCA), otherwise they will be in violation of Section 19 of the Financial Services and Markets Act.

Issuing qualified stablecoins (such as stablecoins pegged to fiat currency)

Custody or management of users' encryption assets (custodial wallet)

Operating a cryptocurrency trading platform

Proprietary Trading (buying and selling encryption assets in one's own name)

Agency trading (buying and selling on behalf of users)

Arrange third-party encryption asset transactions

Assist in Staking and participate in blockchain validation mechanisms.

These new activities are uniformly classified as "Cryptoasset Regulated Activities" in Chapter 2B of the "Regulated Activities Order."

Clearly define qualified encryption assets and stablecoin

The draft also clearly defines "Qualifying Cryptoasset" and "Qualifying Stablecoin" in the regulations for the first time:

Qualified encrypted assets: fungible and transferable, excluding electronic currency, central bank digital currency (CBDC), and non-transferable application tokens, etc.

Qualified stablecoin: pegged to fiat currency, and its stable value is maintained through the issuer holding fiat assets, not belonging to traditional deposits or electronic money.

The transition period lasts up to two years, allowing existing operators to defer applicability.

To assist operators who have not yet obtained authorization to transition smoothly, the draft establishes a temporary exemption mechanism with a two-year deadline. As long as an application is submitted within the designated period, operations can continue during the review period, but they must disclose their unauthorized status to the FCA and its users. If ultimately rejected and the right to appeal is waived, the exemption will automatically become invalid.

Financial promotion and anti-money laundering regulations are updated simultaneously.

The draft synchronously revises other financial regulations, including:

"Financial Promotion Order": The above activities have been added as "controlled activities", and unauthorized persons are not allowed to conduct marketing.

"Anti-Money Laundering and Fund Transfer Regulations": Introduced the identity of "Authorized Encryption Asset Company" and required proactive registration of its service nature and changes with the FCA.

"Electronic Money Ordinance" and "Collective Investment Schemes Ordinance": Exclude the assets behind stablecoins as part of electronic money or funds.

The government is soliciting opinions until May 25, and the final regulations are about to be released.

According to the announcement from the government website, the Ministry of Finance is currently seeking technical opinions from the industry and experts, with the collection of opinions set to close on May 25. The final version of the regulations covering core areas such as market abuse, asset listing, and information disclosure is expected to be officially released soon.

This article discusses the UK's plan to comprehensively regulate crypto assets. The new draft includes the issuance of stablecoins, trading platforms, custody, and Staking services, first appearing in Chain News ABMedia.