UK crypto rules may catch firms off guard

New regulations from the UK's Financial Conduct Authority (FCA) introduce stringent requirements for crypto firms, potentially catching many by surprise. The guidance, effective October 25, 2027, redefines custody, treating any firm holding client assets for over 24 hours as a regulated custodian requiring a safeguarding license. This change impacts validators, node operators, and stablecoin issuers, removing tech-only exemptions if added-value features are offered. Firms must apply for authorization by September 30, with a five-month window to transition from current systems, facing potential sanctions for non-compliance.