Cryptoasset rules set for October 2027 will require UK-targeted offshore firms to comply or exit

Firms that serve UK consumers with cryptoasset services will have to comply with new regulatory rules by October 2027 or exit the market. The Financial Conduct Authority’s latest consultation clarifies that offshore companies engaging in activities like stablecoin issuance, crypto trading platform operations, custody, and staking must fall within the UK’s regulatory perimeter if they involve UK-based users. The normal Overseas Persons Exclusion, which typically shields non-UK firms from domestic rules, does not apply to these activities. Even firms dealing with UK institutions must assess whether their operations are deemed to be in the UK. The regime, which takes effect in October 2027, will require applications by 30 September 2026, with final rules expected shortly before then. The FCA has already begun a pre-application support service to guide potential applicants. Entities not compliant by the deadline will no longer be able to legally offer these services to UK retail investors.