The UK's FCA just dropped new crypto rules that could hit a lot of firms hard. If you hold client crypto for over 24 hours during trade settlement, you're now officially a custodian—and that means you need a full safeguarding license.

Validators and node operators, watch out. Add any "value-added" features like staking rewards or dashboards, and you lose your tech exemption. That forces you into the full approval process under the UK's Financial Services and Markets Act.

Stablecoin issuers face the strictest rules yet. Only UK-based issuers managing the full lifecycle—issuance, redemption, and reserves—are considered legal.

Firms have until February 28, 2027, to apply for approval. Miss that, and you risk fines, suspensions, or shutdown. The FCA's consultation closes June 3, 2026, with final rules expected this summer.

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