The 24-hour trap: Why the U.K.’s new crypto rules could catch some firms off guard

The new regulations revealed by the Financial Conduct Authority include several technical traps which crypto software providers need to watch for to avoid sanctions What to know : The U.K. Financial Conduct Authority has proposed detailed "cryptoasset perimeter" guidance that would bring most crypto activities under the Financial Services and Markets Act by October 25, 2027. Under the plan, any firm holding client crypto assets for more than 24 hours, or with the ability to override client authority, would be treated as a regulated custodian and require a full safeguarding license. Validators, node operators and stablecoin issuers face tighter rules, including loss of tech-only exemptions when offering added-value features and a requirement that U.K.-based issuers control the full stablecoin lifecycle, with firms given a five-month window from Sept. 30 to apply for authorization.