UK draft exempts stablecoin payments from dealer rules

CryptoSlate notes that the UK government presented a draft instrument to Parliament aiming to shrink the crypto regulatory perimeter for qualifying stablecoin payments.

The Financial Services and Markets Act 2000 (Cryptoassets) (Miscellaneous Amendments) Regulations 2026, laid on Sept. 15, has not yet entered into force. The draft intends to strip qualifying transfers from regulations covering dealing as principal, acting as agent, and arranging deals.

According to the proposal, moving a UK qualifying stablecoin to another individual or trading it for cash or a different qualifying stablecoin might sit beyond the dealer scope. Nevertheless, deals that mimic financing or trading stay under regulation. The fundamental exemption fails if the receiver is obligated to return the asset or bears such a responsibility. Exchanging the stablecoin for a distinct cryptoasset, like Bitcoin, also remains outside the payment exception.

A fresh safeguarding clause would leave out transient possession of a stablecoin tied to processing a trade. These carve-outs do not cover extended custodial tasks, like keeping a client wallet, which continue to face safeguarding obligations.

The modifications are planned to activate on Oct. 25, 2027, aligning with the launch of the Financial Conduct Authority’s fresh regime for crypto firms. Parliamentary consent is needed before the instrument moves forward.