Regulation
The Financial Services and Markets Bill 2026-27 returns to the House of Lords for Report Stage on 7 and 9 September 2026, with proposed amendments set to bring additional cryptoasset activities within the FCA's regulatory perimeter. Parliament has already passed the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026, requiring firms that issue new stablecoins, sell other cryptoassets, or operate cryptoasset exchanges to obtain FCA authorisation from October 2027. The Bill amendments are expected to extend that framework further. Separately, the FCA's Scale-up Unit admitted its first cohort of five fast-growing regulated firms, ClearScore, Modulr, Teya, Urban Jungle and Zilch, on 10 August 2026, offering tailored regulatory support as those firms develop new products and manage rapid growth.
Why this matters
The House of Lords Report Stage is a pivotal moment: amendments passed here will define the final scope of the UK's crypto regulatory perimeter ahead of the October 2027 authorisation deadline. Firms currently operating outside FCA oversight have little over a year to restructure, obtain authorisation, or exit the UK market. The parallel launch of the Scale-up Unit signals that the FCA is calibrating its posture, tightening rules on riskier activities while offering supervised growth pathways for compliant fintechs. Together, these moves mark a decisive shift from the UK's previously permissive approach to digital assets and payments innovation.
On the Ground
Financial regulation and fintech practices will be busy advising cryptoasset exchanges, stablecoin issuers, and payments firms on FCA authorisation applications and compliance build-outs ahead of October 2027. Disputes teams should flag the enforcement risk that attaches once the perimeter is live. A trainee on this matter would review the draft Bill amendments in Hansard, map the client's activities against the new regulated categories, and prepare a gap analysis comparing existing compliance frameworks against FCA authorisation requirements.
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