OpenLegislation

Regulation 41 Amendment of the Act

Original text. Later amendments are not shown.

(1)

The Act is amended as follows.

(2)

In section 131AB (interpretation)f1—

(a)

in subsection (1)—

(i)

for the definition of “financial instrument” substitute—

  • ““financial instrument” means any of the following—

    1. (a)

      an instrument specified in Part 1 of Schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, read with Part 2 of that Schedule;

    2. (b)

      a “qualifying cryptoasset” as defined by article 88F of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;

    3. (c)

      a “related instrument” as defined by regulation 17(1) of the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025;”;

(ii)

for the definition of “issuer” substitute—

  • ““issuer” means—

    1. (a)

      an issuer defined by Article 3.1(21) of the market abuse regulationf2, or

    2. (b)

      a “relevant person” as defined by regulation 17(4) of the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025; and”;

(b)

in subsection (2)—

(i)

at the end of paragraph (a), omit “and”;

(ii)

in paragraph (b), for “day.” substitute “day; and”;

(iii)

after paragraph (b), insert—

“(c)

Chapter 2 of Part 2 of the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025.”.

(3)

In section 176 (entry of premises under warrant)f3, in subsection (11)—

(a)

at the end of paragraph (aa) omit “or”;

(b)

before paragraph (b) insert—

“(ab)

by the FCA by virtue of regulation 21 of the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025; or”.

(4)

In section 285 (exemption for recognised bodies etc.), after subsection (2)f4 insert—

“(2A)

Subsection (2) does not apply in respect of a regulated activity specified by Chapter 2B (cryptoassets) of Part 2 (specified activities) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.”.

(5)

In section 384(7) (power of FCA or PRA to require restitution)f5—

(a)

at the end of paragraph (c) omit “or”;

(b)

at the end of paragraph (d), for “that Part.” substitute “that Part; or”;

(c)

after paragraph (d) insert—

“(e)

a requirement imposed by or under Chapter 2 of Part 2 of the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025.”.

(6)

In section 418 (carrying on regulated activities in the United Kingdom), after subsection (6) insert—

“(6B)

The ninth case is where—

(a)

the regulated activity being carried on by the person (“A”) is that specified by article 9M of the Regulated Activities Order (issuing qualifying stablecoin), and

(b)

all of the activities specified in the conditions set out in paragraph (2)(a) to (c) of that article are carried on by A, or on behalf of A, in the United Kingdom.

(6C)

The tenth case is where—

(a)

the regulated activity being carried on by the person (“A”) is a regulated cryptoasset activity,

(b)

A is involved in the sale or subscription of a qualifying cryptoasset to, or by, a consumer (“C”), and

(c)

there is no person who—

(i)

is authorised under Part 4A of this Act to carry on a regulated cryptoasset activity of a kind referred to in subsection (6D)(a) or (b),

(ii)

is carrying on that activity in relation to the sale or subscription mentioned in paragraph (b), and

(iii)

in doing so, is acting as an intermediary between A and C.

(6D)

In subsection (6C), a “regulated cryptoasset activity” means a regulated activity specified by the following articles of the Regulated Activities Order—

(a)

article 9S (operating a qualifying cryptoasset trading platform);

(b)

article 9T (dealing in qualifying cryptoassets as principal);

(c)

article 9W (dealing in qualifying cryptoassets as agent);

(d)

article 9Y (arranging deals in qualifying cryptoassets).

(6E)

The eleventh case is where—

(a)

the regulated activity being carried on by the person (“A”) is specified by—

(i)

article 9N (safeguarding of qualifying cryptoassets and relevant specified investment cryptoassets) of the Regulated Activities Order, or

(ii)

article 9Z6 (qualifying cryptoasset staking) of the Regulated Activities Order,

(b)

A is carrying on that activity on behalf of a consumer, and

(c)

A is not carrying on that activity at the direction of another person who is authorised under Part 4A of this Act to carry on that regulated activity.

(6F)

In subsections (6B) to (6E)—

(a)

“consumer” means an individual in the United Kingdom who is acting for a purpose other than for any trade, business or profession carried on by that individual;

(b)

“Regulated Activities Order” means the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;

(c)

where a term that is used is also used in Chapter 2B (cryptoassets) of Part 2 (specified activities) of the Regulated Activities Order, then it has the same meaning as that given in that Chapter.”.

(7)

In Schedule 6C (listed designated activity regulations and requirements for the purposes of certain provisions)f6—

(a)

in Part 1 (provisions designating relevant designated activities), at the end insert—

“Part 2 of the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025.”.

(b)

in Part 2 (relevant Part 5A requirements for the purposes of specified provisions)—

(i)

in the table, in the entry relating to Part 11 of the Act, in the second column, at the end insert—

“(3)

Part 2 of the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025.”;

(ii)

in the table, in the entry relating to Part 14 of the Act, in the second column, at the end insert—

“(3)

Part 2 of the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025.”;

(c)

in Part 3 (relevant Part 5A directions for the purposes of Chapter 2 of Part 5A), in the table, after the final row insert a new row—

“

Part 2 of the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025.

”.

Annotations

Footnotes

f1

Section 131AB was inserted by S.I. 2016/680 and amended by S.I. 2019/310, 2021/494 and 2023/1424.

f2

EUR 2014/596, to which there are amendments not relevant to this instrument.

f3

Subsection (11) was amended by Schedule 2 to the Financial Services Act 2010 (c. 28) and Schedule 12 to the Financial Services Act 2012. Paragraph (aa) to be amended by paragraph 16 of Schedule 3 to S.I. 2024/105 (19 January 2026).

f4

Subsection (2) was amended by section 28(2) of the Financial Services Act 2012.

f5

Paragraph (c) was inserted by S.I. 2013/1773 and paragraph (d) was inserted by Schedule 10 to the Financial Services (Banking Reform) Act 2013 (c. 33).

f6

Schedule 6C was inserted by S.I. 2025/22.