HMT issues policy note and draft SI on amendments to the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026

HM Treasury has released a draft statutory instrument to amend the Financial Services and Markets Act 2000, enhancing regulations for cryptoassets in the UK.

In a significant move for the crypto industry, HM Treasury has issued a policy note and draft statutory instrument (SI) aimed at amending the Financial Services and Markets Act 2000, specifically related to the Cryptoassets Regulations 2026. This draft was published on April 21, 2026, and it sets the stage for future changes that could reshape the regulatory landscape for cryptoassets in the UK. What Are the Proposed Amendments? The draft SI, which outlines proposed changes to the existing regulatory framework, seeks to provide greater clarity for firms offering stablecoin payment services. These adjustments are expected to eliminate certain barriers preventing the expansion of various crypto use cases. Background on the Financial Services and Markets Act 2000 Originally made in February 2026, the Financial Services and Markets Act 2000 (Cryptoassets) Regulations established a formal regulatory regime for cryptoassets in the UK. These regulations require firms engaging in regulated activities to secure authorization from the Financial Conduct Authority (FCA) when they come into force in October 2027. Why Is This Important for the Crypto Sector? The proposed amendments are designed not only to enhance regulatory certainty for businesses but also to position the UK as an internationally competitive hub for cryptoassets. By refining regulations around stablecoins and streamlining some operational hurdles, the government aims to foster innovation within the sector while maintaining proper oversight. The Push for a Competitive Edge The draft SI also includes additional changes that reflect the government's commitment to creating a favorable environment for crypto firms. By lowering barriers and refining regulatory inclusivity, the UK aims to attract and retain innovative companies in the crypto space. What’s Next for Crypto Regulation in the UK? As the publication of the draft SI marks an important step towards finalizing the amendments, stakeholders in the crypto market