Regulation Watch
Regulation Watch: October 2026
The UK cryptoasset regime moved from rules to readiness this month. The FCA opened its authorisation gateway on 30 September 2026, and firms relying on the savings provisions have until 28 February 2027 to apply. The regime goes live on 25 October 2027.
This briefing covers official UK publications from 15 September to 22 October 2026. Every item links to its source.
What this means if you hold Bitcoin
- Nothing changed this month in how your Bitcoin is taxed or how you hold it yourself.
- The exchanges and apps you use are what change. Any firm serving UK customers must be FCA-authorised by 25 October 2027. You can ask your provider whether it has applied.
- UK platforms have collected your transaction data since 1 January 2026. Their first reports to HMRC, covering 2026, are due by 31 May 2027.
Financial Conduct Authority
Perimeter guidance finalised (PS26/18, 16 September 2026). A new chapter, PERG 18, explains which cryptoasset activities need FCA permission. Information-only services are “unlikely to amount to arranging”. Lending and borrowing are not standalone activities; they fall under dealing, arranging or safeguarding. Advising and managing are not new regulated activities under these Regulations. Whether a firm is safeguarding turns on control of the assets. The FCA stresses that “perimeter assessments will turn on the facts of each case.”
Authorisation gateway opened (30 September 2026). Firms apply for authorisation or a variation of permission. The window for firms relying on the savings provisions closes on 28 February 2027.
Prudential guidance (FG26/9 and FG26/10, 30 September 2026). Guidance on the overall risk assessment regulated cryptoasset firms must carry out under the new prudential rules.
Two consultations (21 October 2026), both closing 18 November 2026. CP26/36 covers new exclusions from the regime, including temporary settlement arrangements, stablecoin payment holdings, proprietary trading and technical services that give access to a decentralised protocol; final guidance is expected in spring 2027. GC26/7 covers how operational resilience rules apply where firms use DeFi; final guidance is planned for January 2027.
HM Treasury, Parliament and the Bank of England
Draft amending regulations were laid before Parliament on 15 September 2026: The Financial Services and Markets Act 2000 (Cryptoassets) (Miscellaneous Amendments) Regulations 2026. Both Houses must approve them.
- Transfers and exchanges of UK qualifying stablecoins come out of dealing and arranging, so paying in them does not need a crypto licence for those activities.
- Lending and borrowing those stablecoins, and exchanging them for other cryptoassets, stay regulated.
- Temporary holdings for settlement and payments are excluded from safeguarding.
The Bank of England published nothing new on stablecoins in the period. Its 22 June 2026 policy stands: no holding limits for individuals, a £40bn issuance guardrail per systemic stablecoin, and a Code of Practice due by the end of 2026.
HMRC and tax
No change in the period. HMRC’s Cryptoassets Manual update log shows no new entries. Under the Cryptoasset Reporting Framework, the first platform reports are due by 31 May 2027. From then, HMRC will hold platform data it can compare with tax returns.
Law and the courts
DPP v Qian and others (High Court, 12 October 2026). The court held that Chinese law governs the property claims of Chinese investors to more than 61,000 bitcoin seized by UK authorities, because the schemes, payments and purchases were centred in China. It did not decide who owns the bitcoin. Victims’ lawyers are reported to be considering an appeal. Where a dispute crosses borders, which country’s law applies can decide the outcome before English property law is reached.
Dates to watch
| When | What |
|---|---|
| 18 Nov 2026 | CP26/36 and GC26/7 close |
| No date set | Parliament votes on the draft amending regulations |
| End of 2026 | Bank of England finalises its systemic stablecoin Code of Practice |
| Jan 2027 | Final DeFi operational resilience guidance |
| 28 Feb 2027 | Authorisation window closes for firms relying on the savings provisions |
| Spring 2027 | Final perimeter guidance from CP26/36 |
| 31 May 2027 | First CARF reports to HMRC, covering 2026 |
| 25 Oct 2027 | UK cryptoasset regime goes live |
Every official document named here is, or will be, in the Alderlux Research Library.
Sources
- FCA, CP26/36: Cryptoasset perimeter guidance (21 October 2026)
- legislation.gov.uk, Cryptoassets (Miscellaneous Amendments) Regulations 2026, draft
- Bank of England, Sterling-denominated systemic stablecoins (22 June 2026)
- HMRC, Cryptoassets Manual: updates
- Herbert Smith Freehills Kramer on PS26/18 and the gateway (20 October 2026)
- Skadden on PS26/18 (October 2026)
- Norton Rose Fulbright on the draft amending regulations (16 September 2026)
- Norton Rose Fulbright on GC26/7 (21 October 2026)
- Regulatory & Compliance, FinReg monthly update (October 2026)
- MHA on HMRC CARF reporting guidance (May 2025)
- Crypto Daily on DPP v Qian (October 2026)
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