UK FCA Releases Final Draft of Crypto Asset Framework: Custody Beyond 24 Hours and Automated Permissions to Be Regulated
Svmuu News The UK Financial Conduct Authority (FCA) has released the final draft of its crypto asset framework. The new rules are scheduled to bring most crypto activities under the regulatory scope of the Financial Services and Markets Act by October 25, 2027. According to the proposal, any institution holding customer crypto assets for more than 24 hours or possessing the ability to revoke customer permissions will be considered a regulated custodian and must hold a full safeguarding license. Validators and node operators offering value-added functions such as staking rewards or reward reinvestment will lose their technical exemption. Furthermore, stablecoin issuers operating within the UK must control the entire lifecycle from issuance to redemption. Relevant institutions are required to submit authorization applications between September 30, 2026, and February 28, 2027.
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