The U.K. Financial Conduct Authority (FCA) is seeking views on how a technical-services exclusion applies to crypto transaction interfaces, a review that could affect which routing services require authorization under forthcoming rules.
The FCA’s CP26/36 consultation addresses an exclusion for technical services under rules on arranging crypto trades. It says software, smart contracts and distributed governance do not alone determine whether an activity is regulated.
Possible indicators of discretion include assessing prices or liquidity, choosing where to direct an order and promoting best execution. The FCA presents these as examples for a case-specific assessment of the provider’s role.
The proposal calls for a fact-specific review of the whole arrangement and each participant’s role. The draft does not address aggregators as a group; its criteria focus on the provider’s role in routing and evaluating transactions.
Existing U.K. cryptoasset businesses seeking to carry out new regulated activities under transition provisions must apply by Feb. 28, 2027, under the FCA authorization timetable. The regime is scheduled to begin Oct. 25, 2027.
