FCA CP26/36: new exclusions from the UK crypto licence regime and what to do before 18 November 2026

7 November 2026 · News · United Kingdom

On 21 October 2026 the FCA published consultation paper CP26/36 with draft perimeter guidance on the new exclusions from the UK cryptoasset regime. Responses are due by 18 November 2026. The exclusions come from a second statutory instrument, the draft FSMA 2000 (Cryptoassets) (Miscellaneous Amendments) Regulations 2026, laid on 14 September 2026 and scheduled for debate in the Lords on 10 November and in the Commons on 11 November. They cover temporary settlement, UK qualifying stablecoins and their backing assets, proprietary trading and market making, technical services that merely give access to a third party or a decentralised protocol, and central securities depositaries. The application window stays as announced: it closes on 28 February 2027, and the regime starts on 25 October 2027.

What changed since PS26/18

PS26/18 of 16 September 2026 was the FCA’s final guidance on the activities brought into the perimeter by SI 2026/102 (PS26/18). Two days earlier, on 14 September 2026, the Government had laid a second instrument with further exclusions, so the Perimeter Guidance Manual (PERG 18) needs a second round. CP26/36 contains that draft guidance, plus consequential changes to PERG 8 on financial promotions (CP26/36 on fca.org.uk; CP26/36 PDF). On the same day the FCA opened GC26/7, non-Handbook guidance for firms that use decentralised finance, on operational resilience and financial crime; it also closes on 18 November 2026 (GC26/7).

The FCA’s web page aims for final guidance in January 2027; the text of the consultation paper says spring 2027. Either way the gateway does not wait: firms that want the savings provision file before 28 February 2027.

The exclusions in the draft instrument

Article numbers below follow the draft instrument on legislation.gov.uk (draft FSMA 2000 (Cryptoassets) (Miscellaneous Amendments) Regulations 2026); PERG references follow CP26/36.

“Merely providing a technical service” is narrow

Chapter 6 of CP26/36 sets the limits. The exclusion applies only to the activity of arranging deals in qualifying cryptoassets; it is available only to persons that are neither authorised under FSMA nor payment service providers; and the FCA states it is not a general exclusion for services described as technological, software-based or connected with decentralised finance, and does not extend to dealing. The draft guidance explains the FCA’s reading of “merely providing” and of “a technical service”, including access to a decentralised protocol.

The FCA also acknowledges that the timing of the second instrument created uncertainty for some firms. Where a firm shows that uncertainty about the technical services exclusion materially affected its ability to submit a complete application, the FCA will exercise some forbearance: provided the firm files an otherwise complete application within the window, it gets extra time to complete the parts that relate to the arranging permission. Affected firms are asked to use the pre-application support service.

UK qualifying stablecoins

The instrument creates a sub-type of qualifying stablecoin: a UK qualifying stablecoin, issued under article 9M by a person with Part 4A permission for that activity. Several exclusions apply only to this sub-type, which is why the draft guidance adds PERG 18.4.5A on the concept and PERG 18.4.5B on the distinction between a qualifying stablecoin and electronic money. Issuing a qualifying stablecoin becomes a controlled activity under the Financial Promotion Order, with exemptions that mirror the dealing and arranging exclusions; the draft instrument requires a UK establishment for offering and redemption.

What this means for an applicant

An exclusion removes one activity from the perimeter; it does not move the window. A platform that trades for clients, safeguards or arranges staking still needs the UK crypto licence through the FCA gateway, and MLR-registered firms that file inside the window continue under the savings provision until the application is determined (CP26/36, para 1.16). What the exclusions change is the shape of the file: which permissions to request and which lines of business to document as excluded.

1. Re-run the perimeter map against PS26/18 and the CP26/36 draft: list each product, the activity it falls into and the exclusion claimed, with the article number.
2. For proprietary trading and market making, record whether you deal to provide a service to another person; the exclusion turns on that point.
3. For an interface or API that routes users to a third-party or decentralised service, test the “mere access” conditions and keep the evidence; the exclusion covers arranging only.
4. If you issue or hold stablecoins, decide whether the token is a UK qualifying stablecoin, a qualifying stablecoin or e-money; the backing-asset and payment-holding exclusions depend on it.
5. File inside the window with a complete pack; if the technical services uncertainty delayed part of it, say so in the application and book a PASS meeting.
6. Send a response to CP26/36 by 18 November 2026 if your model sits on the line; the questions are listed in Annex 1.

In our experience a full UK file takes several months; the time depends on the permissions and on how fast senior managers and controls are in place. Background: FCA authorisation window 30.09.2026 – 28.02.2027, English crypto law. For EU clients the MiCA CASP licence is the parallel route, and the two files share most of the policy set.