The UK Financial Conduct Authority has finalized a comprehensive crypto asset regulatory framework covering capital adequacy for crypto firms, market abuse prohibitions, stablecoin issuance requirements, and custody standards. The rules are set for October 2027 implementation and represent the most detailed UK crypto regulatory framework to date. The FCA's capital rules are notably more lenient than MiCA equivalents, as reported separately.
For Armada's crypto-repo desk, UK-domiciled hedge fund and family office counterparties will begin operating under these rules before the end of 2027. This affects KYC and counterparty due diligence obligations, acceptable stablecoin collateral, and potentially the structure of GMRA-equivalent agreements with UK entities. Legal counsel should determine whether Armada's own activities with UK counterparties trigger any FCA registration or notification requirement.