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The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025

Draft. This instrument was laid in draft and may differ from the one made. Look for the made version under its title.

Draft 2025, ISBN 9780348277586

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Draft Regulations laid before Parliament under sections 71S(2) and 429(2A) and (3) of, and paragraph 26(2)(a) of Schedule 2 to, the Financial Services and Markets Act 2000 (c. 8), for approval by resolution of each House of Parliament.

FINANCIAL SERVICES

Made ***

Coming into force in accordance with regulation 1(2) and (3)

The Treasury make these Regulations in exercise of the powers conferred by sections 21(5), (6), (9), (10) and (15), 22(1) and (5), 71K, 71L, 71M, 71N(2) and (5), 71O(2), (10) and (11), 71P, 71Q, 71R and 428(3) of, and paragraph 25 of Schedule 2 to, the Financial Services and Markets Act 2000 (“the Act”)f1.

In the opinion of the Treasury, one of the effects of these Regulations is that an activity which is not a regulated activity (within the meaning given by section 22 of the Act) will become a regulated activity.

In accordance with sections 71S(2) and 429(2A) and (3) of, and paragraph 26(2)(a) of Schedule 2 to, the Actf2, a draft of these Regulations has been laid before, and approved by a resolution of, each House of Parliament.

Annotations to the whole text

Footnotes

f1

2000 c. 8. Sections 71K to 71S were inserted by section 8(2) of the Financial Services and Markets Act 2023 (c. 29). Section 428(3) was amended by section 66(3) of that Act. Paragraph 25 of Schedule 2 was amended by section 8 of the Financial Services Act 2012 (c. 21) and section 27 of the Financial Guidance and Claims Act 2018 (c. 10).

f2

Subsections (2A) and (2B) of section 429 were inserted by section 136 of the Financial Services (Banking Reform) Act 2013 (c. 33). Subsections (2B)(aa) and (ab) were inserted by section 8(8)(a) of the Financial Services and Markets Act 2023. Subsection (4)(e) was amended by section 27 of the Financial Guidance and Claims Act 2018. There are other amendments that are not relevant to this instrument.

Contents

  1. Part 1: General
  2. 1Citation, commencement and extent
  3. 2Interpretation: general
  4. Part 2: Markets in cryptoassets: designated activities
  5. Chapter 1: Qualifying cryptoasset public offers and admissions to trading
  6. Interpretation
  7. 3Interpretation: qualifying cryptoasset public offers and admissions to trading
  8. 4“Issuing qualifying stablecoin” and the “issuer” of that qualifying stablecoin
  9. 5“Offer of a qualifying cryptoasset to the public”
  10. 6“Qualifying cryptoasset disclosure document” and “supplementary disclosure document”
  11. Designated activities: qualifying cryptoasset public offers and admissions to trading
  12. 7Designated activities: public offers of qualifying cryptoassets
  13. 8Designated activities: admissions to trading on a qualifying cryptoasset trading platform
  14. Designated activity rules: qualifying cryptoasset public offers and admissions to trading
  15. 9Designated activity rules: qualifying cryptoasset public offers and admissions to trading
  16. Prohibition of public offers of qualifying cryptoassets
  17. 10Prohibition of public offers of qualifying cryptoassets
  18. Disclosure of information
  19. 11Disclosure of information
  20. Qualifying cryptoasset disclosure document and supplementary disclosure document
  21. 12Responsibility for disclosure documents
  22. 13General requirements to be met by a qualifying cryptoasset disclosure document or supplementary disclosure document
  23. 14Compensation for statements in a qualifying cryptoasset disclosure document or supplementary disclosure document
  24. 15Withdrawal rights
  25. 16Application of section 85 of the Act (contravention of prohibition relating to public offer of securities)
  26. Chapter 2: Market abuse in qualifying cryptoassets and related instruments
  27. Interpretation: market abuse in qualifying cryptoassets and related instruments
  28. 17Interpretation: market abuse in qualifying cryptoassets and related instruments
  29. 18Inside information
  30. 19Market manipulation
  31. Designated activities: use and disclosure of inside information and market manipulation
  32. 20Designated activities: use and disclosure of inside information and market manipulation
  33. FCA powers: designated activity rules
  34. 21Designated activity rules: market abuse in qualifying cryptoassets and related instruments
  35. Prohibited use of inside information (insider dealing)
  36. 22Prohibited use of inside information (insider dealing)
  37. 23Exclusions: insider dealing
  38. Unlawful disclosure of inside information
  39. 24Prohibition on the disclosure of inside information
  40. 25Exclusions: prohibition on the disclosure of inside information
  41. 26Public disclosure of inside information
  42. 27Public disclosure of inside information: delayed disclosure
  43. Market manipulation
  44. 28Prohibition of market manipulation
  45. 29Exclusions: market manipulation
  46. Systems and procedures to prevent, detect and disrupt market abuse of relevant qualifying cryptoassets and related instruments
  47. 30Systems and procedures for trading relevant qualifying cryptoassets and related instruments
  48. Insider lists for relevant qualifying cryptoassets and related instruments
  49. 31Insider lists for relevant qualifying cryptoassets and related instruments
  50. Information sharing
  51. 32Cases in which sharing of information authorised or required
  52. 33Protected disclosures
  53. Legitimate cryptoasset market practice
  54. 34Legitimate cryptoasset market practice
  55. Chapter 3: General provisions relating to cryptoasset designated activities
  56. Reporting of infringements
  57. 35Reporting of infringements
  58. Rule-making powers of the FCA
  59. 36Disapplication or modification of rules
  60. Power of the FCA to give directions
  61. 37Power of the FCA to give directions
  62. Designated activity enforcement by the FCA: cryptoasset designated activities
  63. 38FCA’s power to require information from persons not subject to a requirement imposed by virtue of any other provision of this Part: cryptoasset designated activities
  64. 39Liability for contravention of a prohibition in regulation 22, 24 or 28
  65. Part 3: Amendment of the Regulated Activities Order
  66. 40Amendment of the Regulated Activities Order
  67. Part 4: Amendment of the Act
  68. 41Amendment of the Act
  69. Part 5: Amendment of the Financial Promotion Order
  70. 42Amendment of the Financial Promotion Order
  71. Part 6: Consequential amendment of other secondary legislation
  72. 43Amendment of the Financial Services and Markets Act 2000 (Collective Investment Schemes) Order 2001
  73. 44Amendment of the Financial Services and Markets Act 2000 (Carrying on Regulated Activities by Way of Business) Order 2001
  74. 45Amendment of the Financial Services and Markets Act 2000 (Professions) (Non-Exempt Activities) Order 2001
  75. 46Amendment of the Electronic Money Regulations 2011
  76. 47Amendment of the Alternative Investment Fund Managers Regulations 2013
  77. 48Amendment of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017
  78. 49Amendment of the Payment Services Regulations 2017
  79. 50Amendment of the Financial Services and Markets Act 2000 (Prudential Regulation of FCA Investment Firms) (Definitions for the purposes of Part 9C) Regulations 2021
  80. Part 7: Savings and transitional provision
  81. Chapter 1: Interpretation and relevant application period
  82. 51Interpretation
  83. 52Relevant application period
  84. Chapter 2: Cryptoasset saving provision
  85. 53Saving provision for decisions not fully determined
  86. 54Notification by a person to whom regulation 53 applies
  87. Chapter 3: Cryptoasset transitional provision
  88. 55Application of the cryptoasset transitional provision
  89. 56Temporary exemption relating to pre-existing contracts
  90. 57Notification by a person to whom regulation 56 applies
  91. 58Information to be supplied to a party to a contract with a person to whom regulation 56 applies
  92. 59Variation and cancellation of an exemption under regulation 56
  93. 60Restrictions on financial promotions
  94. 61Information gathering
  95. 62Publication of information
  96. 63Public censure
  97. Chapter 4: Consultation relating to rules and guidance by the FCA
  98. 64Consultation relating to rules and guidance by the FCA
  99. Part 8: Review
  100. 65Review
  101. Signature
  102. Schedule 1: Exceptions from prohibition of offers to the public
  103. Part 1: Offers not contravening prohibition
  104. General exceptions
  105. 1Paragraph 1
  106. 2Paragraph 2
  107. 3Paragraph 3
  108. 4Paragraph 4
  109. Qualifying stablecoin
  110. 5Paragraph 5
  111. Offer of qualifying cryptoassets admitted to trading
  112. 6Paragraph 6
  113. Offer of qualifying cryptoassets to directors or employees
  114. 7Paragraph 7
  115. Part 2: Supplementary provisions relating to Part 1
  116. 8Paragraph 8
  117. 9Paragraph 9
  118. 10Paragraph 10
  119. 11Paragraph 11
  120. Schedule 2: Compensation: exemptions
  121. Part 1: General exemptions
  122. Statements believed to be true
  123. 1Paragraph 1
  124. Correction of statements
  125. 2Paragraph 2
  126. Statements by experts
  127. 3Paragraph 3
  128. Correction of statements by experts
  129. 4Paragraph 4
  130. Official statements
  131. 5Paragraph 5
  132. Belief that supplementary disclosure document not called for
  133. 6Paragraph 6
  134. Meaning of “expert”
  135. 7Paragraph 7
  136. Part 2: Further exemption relating to forward-looking statement
  137. “Protected forward-looking statement”
  138. 8Paragraph 8
  139. Exemption from liability
  140. 9Paragraph 9
  141. Explanatory note