Nikita Veremeev
02.08.2025 | 6 min read
Updated: 02.08.2025
In 2025, the UK’s digital asset market enters a new era: according to the FCA, over 70% of companies previously working with UK clients do not meet the new authorisation requirements and are forced to revise their business models. Amidst this, the number of requests for FCA authorisation for crypto platforms has doubled over the last six months. Why such sweeping changes? New FCA crypto rules and UK cryptoasset regulation are not just another wave of compliance, but a strategic shift that changes the rules of the game for international companies, institutional investors, and fintech startups.
Today, digital asset regulation in the UK is becoming one of the most comprehensive and detailed in Europe. HM Treasury crypto policy and UK crypto legislation now cover not only traditional exchanges and wallets but also DeFi protocols, stablecoin issuers, intermediaries, and even foreign platforms working with UK retail clients.
Businesses face questions: how to maintain market access, ensure compliance with new requirements, minimize costs, and not miss new opportunities? In this article, I will thoroughly dissect the key changes in UK crypto regulation 2025, their strategic and operational impacts, and provide practical recommendations based on COREDO’s experience in supporting international projects for legal entity registration, licensing, and implementing AML/KYC in the EU, the UK, Singapore, and Dubai. If you want to not just survive but become a leader in the new market: this guide is for you.
Key Changes in Cryptocurrency Regulation in the UK 2025
Key changes in cryptocurrency regulation in the UK 2025 reflect a new stage in forming the legal framework for digital assets and stablecoins. Starting from early 2025, UK authorities introduce updated rules aligning cryptocurrency service requirements with traditional financial sector standards. Below, we explore the main elements of this regulatory framework and precisely what has changed for all market participants.
Regulatory Framework: What Has Changed?
In 2025, the UK crypto regulatory framework 2025 comes into effect, introducing for the first time the concepts of “qualifying cryptoassets” and “qualifying stablecoins”. Now, not only traditional utility tokens but also a wide range of digital assets, including stablecoins, security tokens, and even certain NFTs used as payment or investment instruments, fall under regulation.
Special attention is given to expanding the list of regulated activities: issuance, custody, trading, administration, exchange, as well as reserve management and redemption for stablecoins. For the first time, the Financial Services and Markets Act 2000 officially applies to crypto assets, necessitating mandatory licensing for anyone providing services in the UK or working with UK clients.
FCA Licensing Requirements 2025
Starting in 2025, mandatory FCA authorisation applies to all crypto trading platforms, stablecoin issuers, cryptoasset intermediaries, and even overseas crypto exchanges if they serve UK retail clients. The registration process includes several stages: preparing the corporate structure, implementing compliance procedures, IT infrastructure audit, and AML/KYC, as well as demonstrating readiness for safeguarding and administration of cryptoassets.
The solution developed at COREDO for clients entering the UK market involves step-by-step preparation for FCA crypto rules: from analyzing the business model to implementing UK crypto compliance requirements and preparing for Cryptoasset exchange authorisation. Special attention is given to new requirements for cryptoasset intermediary authorisation and procedures for overseas crypto exchanges UK authorisation, where the key barrier becomes the need for a physical presence and UK-centric infrastructure.
Geographical Requirements and Restrictions
UK cross-border crypto regulation now covers all companies offering services to UK clients, regardless of their registration jurisdiction. Territoriality requirements and physical presence requirement are introduced: obtaining authorisation requires a local branch, a local team, and IT infrastructure that complies with FCA standards.
For cross-border crypto services, this means revising operational models and significant investments in localization. The COREDO team’s experience has demonstrated that successfully overcoming these barriers is possible only through early integration of FCA requirements into the market entry strategy and building UK-centric infrastructure.
Regulation of the Crypto Market by Segments
Regulation of the crypto market by segments is becoming increasingly specific: different parts of the market require their own rules and standards. This approach allows for taking into account the features of each direction and building effective control mechanisms, starting with stablecoin regulation and standards for their issuers.
Stablecoin Regulation and Standards for Issuers
UK stablecoin regulation introduces strict requirements for reserves, transparency, and redemption. Issuers must ensure 100% fund reserving, regular reporting, and the possibility of immediate fund return upon customer request. Cryptoasset safeguarding and cryptoasset administration rules become mandatory elements of internal control.
For stablecoin issuers, this means the need to revise business models, implement new procedures for cryptoasset listing requirements, and prepare for regular audits. COREDO’s experience in supporting stablecoin issuance projects in Europe and Asia confirms: early compliance with new standards reduces the risk of operational blocks and increases confidence among institutional investors.
DeFi: New Staking Rules
UK DeFi regulation first formalizes criteria for truly decentralized protocols: if there is no controlling party, such projects can get an exemption from regulation. However, for most DeFi platforms and services like staking and crypto lending regulation, new requirements for AML/KYC, smart contract transparency, and risk management are introduced.
Implementing Decentralised Finance (DeFi) compliance becomes mandatory for anyone attracting funds from retail or institutional investors. COREDO’s practice showed that integrating procedures of crypto staking regulation and crypto lending regulation at an early stage of product development significantly accelerates the authorisation process and reduces compliance process adjustment costs.
Regulation of Crypto Exchanges and Brokers
Cryptoasset trading platforms (CATPs) are now required to undergo separate authorisation and meet new standards for risk management, safeguarding, and reporting. Cryptoasset intermediaries FCA has stricter requirements for corporate governance, asset validation, and client protection.
Implementing these standards requires new procedures for cryptoasset trading platforms authorisation and revising internal policies. The COREDO team has implemented comprehensive projects to prepare platforms for new requirements, enabling clients not only to pass authorisation but also to increase investment attractiveness for institutional partners.
AML, KYC and Investor Protection
AML, KYC and **investor protection mechanisms** become the standard for all financial market participants. Such measures not only minimize risks of money laundering and fraud but also directly contribute to strengthening trust and safety for clients and investors.
New Requirements for AML, KYC, and Safeguarding
Crypto compliance UK reaches a new level: implementing best practices of AML (Anti-Money Laundering) for crypto and KYC (Know Your Customer) in crypto becomes mandatory for all market participants. The FCA requires not only the technical implementation of procedures but also their integration into business processes, regular staff training, and independent audits.
Safeguarding cryptoassets is another key element: companies must keep client assets separate from their own, use segregated accounts, and ensure constant transaction monitoring. COREDO’s experience has shown that implementing comprehensive cryptoasset safeguarding requirements reduces the risk of account blockages and increases the level of trust from clients and regulators.
Monitoring and Abuse Prevention
Starting in 2025, new requirements for cryptoasset monitoring and reporting are introduced: all operations must be recorded, analyzed for market manipulation (pump and dump), insider trading prevention, and cryptoasset fraud prevention. Companies are required to implement automatic monitoring systems, provide regular reports to the FCA, and be ready for unplanned inspections.
COREDO’s practice confirms: integrating modern solutions for monitoring and fraud prevention allows not only to comply with new requirements but also to significantly improve operational efficiency and reduce the cost of incident investigations.
Consumer and Investor Rights
UK crypto investor protection comes to the forefront: new rules provide for asset return mechanisms, property rights protection, and the introduction of standards for cryptoasset governance rules. Special attention is given to digital asset property law and ensuring transparency in corporate governance.
For institutional and retail investors, this means an increased level of protection, and for businesses, the need to implement new procedures for governance, validation, and reporting. Solutions implemented by COREDO for clients from the EU and the UK showed that a proactive stance in consumer protection in crypto helps attract large investors and reduces regulatory risks.
Implementation of New Rules: Practical Steps
Implementing new rules requires a detailed analysis of current business processes and the search for growth points. Practical steps on this path will help adapt the company model to maximize return on investment (ROI) and sustainable development in new conditions.
Adapting the Business Model for ROI Growth
Cryptoasset business model adaptation becomes a key challenge: new requirements lead to increased compliance, IT, and staff training costs, but simultaneously open up access to a wider range of institutional clients. Evaluating cryptoasset ROI metrics requires considering not only direct expenses but also potential benefits from increased trust, reduced operational risks, and market expansion.
The COREDO team helps clients build cryptoasset scaling strategies, optimizing compliance processes and reducing costs at each stage of implementing new standards. Conducting a cryptoasset regulatory impact assessment allows for assessing the impact of changes on the business model in advance and adjusting the development strategy.
Company Registration and Corporate Governance
Starting in 2025, the procedure for cryptoasset legal entity structuring and company registration in the UK becomes more complicated: more detailed corporate structure development, the implementation of procedures for cryptoasset governance, and asset validation is required. UK crypto business legal requirements include the mandatory presence of independent directors, auditors, and the implementation of internal control systems.
COREDO’s practice has shown that early integration of governance and validation requirements can expedite the registration and authorisation process and minimize the risk of rejection by the FCA. For clients entering the UK market, we develop individual roadmaps for adapting corporate governance to new standards.
Impact on International Companies and Operations
UK cross-border crypto regulation creates new barriers for overseas crypto exchanges and companies from Europe and Asia, but simultaneously opens opportunities for those ready to invest in localization and compliance. Requirements for physical presence and UK-centric infrastructure necessitate revising operational models, but offer a strategic advantage in accessing UK institutional investors.
Solutions implemented by COREDO for international clients include comprehensive preparation for overseas crypto exchanges UK authorisation, adapting business processes to UK crypto regulation for institutional investors, and building effective cross-border compliance strategies.
Challenges and Opportunities for Market Participants
Challenges and Opportunities for Market Participants the role of **platforms** and **intermediaries** is especially important, as they determine the rules of engagement between manufacturers, buyers, and other market players.
Platforms and Intermediaries – What Are They?
Cryptoasset intermediary authorisation becomes one of the most resource-intensive processes: new compliance costs, the need to implement complex monitoring and reporting systems, and increased corporate governance requirements. Cryptoasset market entry barriers are rising, but for those who successfully undergo authorisation, new niches and opportunities for partnership with major institutional players open up.
What Institutional Investors and Banks Need to Know
UK crypto regulation for institutional investors introduces new market access standards, risk management, and compliance requirements. For banks and funds, this implies the need to revise investment strategies, implement new risk assessment procedures, and continuously monitor legislative changes.
COREDO’s experience has shown that proactive adaptation to new standards allows institutional investors to minimize regulatory risks and increase portfolio returns.
SEO for Startups and Fintech Companies
Crypto market innovation and support from the UK Plan for Change open up new opportunities for startups: simplified authorisation procedures for innovative projects, access to regulatory sandbox, and the ability to test new business models in a controlled environment. Cryptoasset regulatory roadmap allows for building a phased market entry strategy and minimizing compliance costs.
Practical Business Advice
- Analyze your business model: Determine whether your activities fall under the new UK crypto regulation 2025 requirements.
- Prepare your corporate structure: Implement procedures for governance, safeguarding, and asset validation.
- Plan for FCA authorisation: Gather the necessary documents, implement AML/KYC, and prepare IT infrastructure.
- Implement best AML/KYC practices: Use modern solutions for automating client checks and transaction monitoring.
- Optimize your tax burden: Consult with experts on cryptoasset tax compliance UK.
- Prepare for transition phases: Follow updates from the FCA Consultation Paper CP25/14, CP25/15, and HM Treasury draft legislation.
- Evaluate compliance ROI: Use efficiency metrics to adapt compliance procedures for strategic adjustments.
Insights for Entrepreneurs and Executives
UK crypto regulation 2025 is not just a tightening of rules but a new reality where those who can quickly adapt, invest in compliance, and build transparent business models succeed. For a successful market entry in the UK, it is important to:
- Implement comprehensive compliance procedures at an early stage.
- Prepare corporate structure and IT infrastructure for new requirements.
- Leverage the experience of reliable partners to minimize risks and accelerate authorisation.
- Constantly monitor legislative changes and adjust the development strategy.
COREDO’s practice has shown: a proactive approach to adopting new standards not only reduces regulatory risks but also opens access to strategic opportunities in one of Europe’s most promising markets.
Licensing Requirements for Participants
| Type of Participant | FCA authorisation Requirements | AML/KYC | Safeguarding | Monitoring & Reporting | Key Features 2025 |
|---|---|---|---|---|---|
| Crypto trading platforms | Yes | Yes | Yes | Yes | New CASS, CRYPTO standards |
| Stablecoin issuers | Yes (UK issuers) | Yes | Yes | Yes | Reserve and redemption requirements |
| Overseas exchanges | Yes (if working with UK retail clients) | Yes | Yes | Yes | Physical presence requirement |
| DeFi protocols (truly decentralised) | No | No | No | No | Exemptions if no controlling party |
| Cryptoasset intermediaries | Yes | Yes | Yes | Yes | New governance requirements |
If you are planning to scale your business, enter the UK market, or adapt your existing structure to new requirements – COREDO’s team is ready to offer strategic solutions based on deep expertise and practical experience in international legal and financial consulting.