The government has proposed changes to the UK’s crypto regulatory regime. The changes include providing more flexibility for firms to provide market making services without needing a UK licence.

New amending regulations

Parliament made legislation earlier this year to establish a regulatory regime for cryptoassets in the UK. The regime starts to apply on 25 October 2027.

HM Treasury has published the Financial Services and Markets Act 2000 (Cryptoassets) (Amendment) Regulations 2026 in draft. These Amendment Regulations make targeted changes to the crypto regime.

Proprietary trading exclusion

Among the changes, a new exclusion is added to the regulated activity of dealing in qualifying cryptoassets as…