UK Finalizes Crypto Rules: Stablecoins at 1% Capital, MARC Against Market Abuse, Licensing from 2027

On June 30, 2026, the UK's Financial Conduct Authority published its final crypto regulatory package — the country's first comprehensive mandatory regime for cryptoassets. The package covers stablecoin capital requirements, a new market abuse framework called MARC, and a clear licensing pathway for the whole industry, the FCA reports.

What the UK chose: competing through lighter rules

The headline decision is the cut to stablecoin issuer capital requirements from 2% to 1%. The K-SII coefficient — the 'K-factor' that determines the minimum capital buffer — was halved after market participants said the original level was disproportionately high. Alongside this, the FCA introduced MARC — the Market Abuse Regime for Cryptoassets: a dedicated framework against insider trading and price manipulation, designed specifically for crypto rather than copied from equity market rules, CCN reports.

"This regime means they can have both regulatory certainty and room to innovate — in a stable, competitive home" — David Geale, Executive Director of the FCA.

How this compares to MiCA: Europe chose a different path

The contrast with the European approach is stark. MiCA, which came fully into force on July 1, 2026, effectively pushed USDT off licensed European exchanges and left 88% of the EU's 3,389 crypto firms without a licence (only 244 secured full authorisation). The UK is deliberately taking a different road: a lower capital threshold, a longer transition period, and a bespoke — rather than borrowed — market abuse regime, Bitcoin.com notes.

When and how the new regime works

Firms can apply for authorisation between September 30, 2026 and February 28, 2027. The mandatory regime takes full effect on October 25, 2027 — giving the industry more than a year of transition. Activities requiring a licence include: operating crypto trading platforms, dealing and arranging in qualifying cryptoassets, safeguarding assets, issuing stablecoins, and arranging staking. Pre-application support from the FCA is available from July 2026. DeFi, DLT-based operational resilience and financial crime guidance will follow in separate consultation documents later this year.

Takeaway

The FCA is making a pragmatic bet: attract companies looking for regulatory certainty without strangling requirements. Against the backdrop of MiCA-driven exits and ongoing US uncertainty around the CLARITY Act, the UK's window as a 'third option' is opening. Whether it translates into a real influx will show in the authorisation queue from October.

This article is for informational purposes only and does not constitute investment or legal advice.