{
  "url": "https://openlegislation.uk/draft-financial-services-and-markets-act-2000-cryptoassets-miscellaneous-amendments-regulations-2026/regulation-4",
  "json_url": "https://openlegislation.uk/draft-financial-services-and-markets-act-2000-cryptoassets-miscellaneous-amendments-regulations-2026/regulation-4.json",
  "legislation": "ukdsi/2026/9780348287233",
  "legislation_title": "The Financial Services and Markets Act 2000 (Cryptoassets) (Miscellaneous Amendments) Regulations 2026",
  "legislation_url": "https://openlegislation.uk/draft-financial-services-and-markets-act-2000-cryptoassets-miscellaneous-amendments-regulations-2026",
  "path": "regulation/4",
  "kind": "regulation",
  "number": "4",
  "heading": "Amendment of the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026",
  "text": "(1) The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 are amended as follows.\n(2) In regulation 1 (citation, commencement and extent)—\n(a) in paragraph (2), for “paragraph (3)” substitute “paragraphs (2A) and (3)”;\n(b) after paragraph (2) insert—\n“(2A) The following regulations come into force 21 days after the day on which the Financial Services and Markets Act 2000 (Cryptoassets) (Miscellaneous Amendments) Regulations 2026 come into force in accordance with regulation 1(2) of those Regulations—\n(a) regulation 43 (amendment of the Financial Services and Markets Act 2000 (Collective Investment Schemes) Order 2001);\n(b) regulation 46 (amendment of the Electronic Money Regulations 2011);\n(c) regulation 47 (amendment of the Alternative Investment Fund Managers Regulations 2013).”.\n(3) In regulation 17 (interpretation: market abuse in qualifying cryptoassets and related instruments), in paragraph (5), omit “for the purposes of the market abuse regulation”.\n(4) In regulation 24 (prohibition on the disclosure of inside information), after paragraph (4) insert—\n“(5) For the purposes of this Chapter, it is immaterial where the activities specified by this regulation are carried out.”.\n(5) In regulation 40 (amendment of the Regulated Activities Order)—\n(a) in paragraph (2)—\n(i) in the opening words, after “article 3 (interpretation)” insert “, in paragraph (1)”;\n(ii) for the definition of “specified investment cryptoasset” substitute—\n““specified investment cryptoasset” means a cryptoasset that—\n(a) is a specified investment as a result of Part 3 (specified investments), excluding any investment of a kind specified by article 88F (qualifying cryptoassets) or by article 89 (rights to or interests in investments) so far as relevant to an investment falling within article 88F, and\n(b) would be a qualifying cryptoasset if article 88F(4) was disregarded;”;\n(iii) after the definition of “specified investment cryptoasset” insert—\n““UK qualifying stablecoin” means a qualifying stablecoin that is issued, within the terms and scope of article 9M (issuing qualifying stablecoin), by a person with a Part 4A permission for the regulated activity specified by that article;”;\n(b) in paragraph (5)—\n(i) in new article 9M (issuing a qualifying stablecoin)—\n(aa) for paragraph (2)(a) substitute—\n“(a) A offers, or arranges for another to offer, a qualifying stablecoin for sale or subscription, or A has previously done so, whether before or on or after the coming into force of this article,”;\n(bb) after paragraph (4)(a) insert—\n“(aa) the activity of offering a qualifying stablecoin in sub-paragraph (2)(a) must be carried on from an establishment in the United Kingdom;”;\n(ii) in new article 9N (safeguarding of qualifying cryptoassets and relevant specified investment cryptoassets), in paragraph (5)(c), for “the person who would otherwise be regarded as safeguarding the cryptoasset on behalf of another person (“A”)” substitute “A”;\n(iii) for new article 9Q (article 9N exclusion: temporary settlement arrangements) substitute—\n“Article 9N exclusion: temporary settlement arrangements\n9Q (1) There are excluded from article 9N(1) arrangements whereby a qualifying cryptoasset is safeguarded temporarily to facilitate the settlement of a transaction.\n(2) For the purposes of paragraph (1), facilitating the settlement of a transaction means activity ancillary to—\n(a) dealing or arranging a deal in a qualifying cryptoasset;\n(b) activity specified by—\n(i) article 9S (operating a qualifying cryptoasset trading platform);\n(ii) article 9Z6 (qualifying cryptoasset staking).”;\n(iv) after new article 9Q insert—\n“Article 9N exclusion: temporary UK qualifying stablecoin holding arrangement for payment transactions\n9QA (1) There are excluded from article 9N(1) arrangements whereby a UK qualifying stablecoin is held temporarily in connection with the execution of a payment transaction.\n(2) For the purposes of paragraph (1), a “payment transaction” means an act initiated by a payer or payee, or on behalf of the payer, of placing, transferring or withdrawing funds (including UK qualifying stablecoin), irrespective of any underlying obligations between the payer and payee.\nArticle 9N exclusion: assets held in relation to a UK qualifying stablecoin\n9QB There are excluded from article 9N(1) arrangements—\n(a) made in relation to a UK qualifying stablecoin,\n(b) carried on by a person with a Part 4A permission to carry on the regulated activity specified by article 9M (issuing qualifying stablecoin) in relation to that qualifying stablecoin, and\n(c) relating to assets held for the purpose set out in article 88G(2)(b) (qualifying stablecoin).”;\n(v) in new article 9R (article 9N exclusions: other exclusions), after paragraph (3) insert—\n“(4) There is excluded from article 9N(1) any activity carried on by a person pursuant to arrangements in relation to a specified investment cryptoasset—\n(a) which are operated by a recognised CSD or a third country CSD (“D”) in the course of operating a central securities depository, and\n(b) under which D undertakes to the person on whose behalf the relevant specified investment cryptoasset is being safeguarded a responsibility in respect of that cryptoasset which is no less onerous than D would have undertaken if D were safeguarding the cryptoasset.”;\n(vi) after new article 9U (article 9T exclusions: absence of holding out etc.) insert—\n“Article 9T exclusions: proprietary trading\n9UA There is excluded from article 9T (dealing in qualifying cryptoassets as principal) activity which is carried on—\n(a) otherwise than for the purpose of providing a service to another person, or\n(b) as a market maker on a qualifying cryptoasset trading platform.”;\n(vii) in new article 9Y (arranging deals in qualifying cryptoassets), in paragraph (2) omit “for the”;\n(viii) after new article 9Z2 (Article 9Y exclusion: enabling parties to communicate) insert—\n“Article 9Y exclusion: technical services exclusion\n9Z2A (1) Subject to paragraph (2), there are excluded from article 9Y arrangements under which a person (“A”), who is not an authorised person or a payment service provider, merely providing a technical service that allows another person (“C”) to access services provided by a third person or a decentralised protocol (“V”).\n(2) Paragraph (1) only applies where one or both of the following apply—\n(a) V is carrying on a regulated activity in relation to the services referred to in paragraph (1), and is an authorised person or an exempt person in relation to carrying on that activity;\n(b) V is a decentralised protocol.\n(3) For the purposes of paragraph (1), “payment service provider” has the meaning given by regulation 2(1) of the Payment Services Regulations 2017 (interpretation).”;\n(ix) in new article 9Z4 (Article 9Y exclusion: trustees, nominees and personal representatives), in the heading to that article omit “, nominees”;\n(x) in new article 9Z10 (activities carried on for the sale of goods or supply of services), after paragraph (3) insert—\n“(3A) This article does not apply where article 9Z10A applies.”;\n(xi) after new article 9Z10 (activities carried on for the sale of goods or supply of services) insert—\n“UK qualifying stablecoin and qualifying stablecoin transactions\n9Z10A. (1) Subject to paragraphs (2) and (3), there is excluded from the articles specified by paragraph (6) activity comprising or related to—\n(a) the transfer of a UK qualifying stablecoin to another person;\n(b) the exchange of a UK qualifying stablecoin for another asset, including money or another UK qualifying stablecoin;\n(2) Paragraph (1) does not apply to the transfer or disposal of a UK qualifying stablecoin which is subject to a right for the return of the qualifying stablecoin.\n(3) Paragraph (1) does not apply to activity comprising, or related to, the exchange of a UK qualifying stablecoin for a qualifying cryptoasset other than a UK qualifying stablecoin.\n(4) Subject to paragraph (5), there is excluded from the articles specified by paragraph (6) activity where qualifying stablecoin is the cryptoasset in or the subject of the following arrangements—\n(a) a person (“B”) received the cryptoasset from another person (“A”) under a title transfer cryptoasset collateral arrangement, or\n(b) a person (“B”) acquired the cryptoasset from another person (“A”) A under an agreement, pursuant to which A contracted to buy back the cryptoasset from B.\n(5) Paragraph (4) does not apply where A is—\n(a) a consumer, as defined in article 9N(5)(a) (safeguarding of qualifying cryptoassets and relevant specified investment cryptoassets), or\n(b) specified, or of a description specified, in rules made by the FCA.\n(6) The articles specified for the purposes of paragraphs (1) and (4) are—\n(a) article 9T (dealing in qualifying cryptoassets as principal);\n(b) article 9W (dealing in qualifying cryptoassets as agent);\n(c) article 9Y (arranging deals in qualifying cryptoassets).\n(7) For the purposes of paragraph (4), a “title transfer cryptoasset collateral arrangement” means an agreement or arrangement between B and A, where—\n(a) the purpose of the agreement or arrangement with A is to secure or otherwise guarantee financial obligations owed by A to B, and\n(b) A transfers legal and beneficial ownership of the cryptoasset to B on terms that B must transfer legal and beneficial ownership of the cryptoasset or its equivalent to A when the financial obligations referred to in sub-paragraph (a) are discharged.”;\n(c) in paragraph (11), in new article 88F (qualifying cryptoassets), for paragraph (4)(a) substitute—\n“(a) a specified investment cryptoasset, other than one specified by article 74A (electronic money);”;\n(6) In regulation 42 (amendment of the Financial Promotion Order)—\n(a) in paragraph (2), in the text to be inserted, as the appropriate places, insert—\n““qualifying cryptoasset trading platform” has the meaning given by article 3(1) of the Regulated Activities Order (interpretation);\n“UK qualifying stablecoin” has the meaning given by article 3(1) of the Regulated Activities Order (interpretation);”;\n(b) in paragraph (5)(a)(iii), in new paragraph 7A (safeguarding of qualifying cryptoassets and relevant specified investment cryptoassets)—\n(i) in sub-paragraph (10), for “article 9V(2)(c)” substitute “article 9V(1)(e)”;\n(ii) after sub-paragraph (10) insert—\n“(10A) There is excluded from sub-paragraph (1) any activity carried on by a person pursuant to arrangements in relation to a specified investment cryptoasset—\n(a) which are operated by a recognised CSD or a third country CSD (“D”) in the course of operating a central securities depository, and\n(b) under which D undertakes to the person on whose behalf the relevant specified investment cryptoasset is being safeguarded a responsibility in respect of that cryptoasset which is no less onerous than D would have undertaken if D were safeguarding the cryptoasset.\n(10B) There are excluded from sub-paragraph (1) arrangements—\n(a) made in relation to a UK qualifying stablecoin,\n(b) carried on by a person with a Part 4A permission to carry on the regulated activity specified by article 9M of the Regulated Activities Order (issuing qualifying stablecoin) in respect of that qualifying stablecoin, and\n(c) relating to assets held for the purpose set out in article 88G(2)(b) of that Order (qualifying stablecoin).”;\n(iii) in sub-paragraph (11)(d), for “the person who would otherwise be regarded as safeguarding the cryptoasset on behalf of another person (“A”)” substitute “A”.\n(7) In regulation 59 (variation and cancellation of an exemption under regulation 56)—\n(a) in paragraph (2), omit “and (c)”;\n(b) in paragraph (6), for “(4)” substitute “(5)”;\n(c) in paragraph (8), for “(4)” substitute “(5)”.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "S.I. 2026/102."
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "S.I. 2026/***."
    },
    {
      "type": "footnote",
      "label": "f3",
      "text": "S.I. 2001/1062."
    },
    {
      "type": "footnote",
      "label": "f4",
      "text": "S.I. 2011/99."
    },
    {
      "type": "footnote",
      "label": "f5",
      "text": "S.I. 2013/1773."
    },
    {
      "type": "footnote",
      "label": "f6",
      "text": "“Recognised CSD” and “third country CSD” defined in section 285 of the Act (exemption for recognised bodies etc.)."
    },
    {
      "type": "footnote",
      "label": "f7",
      "text": "S.I. 2017/752."
    },
    {
      "type": "footnote",
      "label": "f8",
      "text": "“Recognised CSD” defined in section 285 of the Act (exemption for recognised bodies etc.)."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukdsi/2026/9780348287233/regulation/4",
    "retrieved_at": "2026-10-30T14:36:50.669776+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}