In April 2026, HM Treasury published a draft statutory instrument amending the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (SI 2026/102). The draft SI is at consultation stage; HM Treasury is seeking views before finalising the instrument. The main FSMA 2000 (Cryptoassets) Regulations 2026 were made in February 2026 and will bring most cryptoasset activities into an FCA-authorised perimeter from October 2027.
SI 2026/102 establishes regulated activities including dealing in qualifying cryptoassets (regulation 9A) and issuing qualifying stablecoins (regulation 9M). Firms providing stablecoin payment services currently fall within the dealing and arranging perimeter and would need cryptoasset authorisation by October 2027. The draft SI proposes to exempt such firms: a firm providing payment services using qualifying stablecoins issued by a UK-authorised issuer under regulation 9M will not require a separate cryptoasset dealing or arranging authorisation while HM Treasury's planned payment services reforms remain incomplete.
Payment service providers planning stablecoin payment rails avoid the need to apply for both a cryptoasset authorisation and a payments authorisation in parallel. Banks and electronic money institutions already authorised under the Payment Services Regulations 2017 would not need a separate cryptoasset licence to route qualifying stablecoin payments. The exemption is expressly temporary; once HM Treasury introduces its planned payment services reform legislation, the stablecoin payments perimeter will move fully into the payments regime.
The exemption applies only to stablecoins issued by firms authorised under regulation 9M of SI 2026/102. Stablecoins issued by unauthorised firms or overseas issuers remain within the full cryptoasset authorisation perimeter. The draft SI contains additional amendments to maintain the international competitiveness of the UK cryptoasset regime. The October 2027 authorisation deadline under the main regulations is unchanged.
Licentium advises on UK cryptoasset regulatory compliance and has a partner network for payment service providers and stablecoin issuers. Work we undertake includes FSMA 2000 (Cryptoassets) Regulations perimeter analysis, FCA authorisation planning, stablecoin issuance regulatory mapping, and dual-authorisation strategy for entities operating in both crypto and payments regimes.