Related: OCC Finalizes GENIUS Act Rules for Stablecoin Issuers Ahead of 2027
The regulator also points to vulnerabilities in open protocols and automated systems, urging firms to put appropriate safeguards in place.
Crypto Firms Face Authorization Deadline
The second consultation proposes exemptions for certain stablecoin payment arrangements, technical services and proprietary trading. These exemptions would help firms determine whether their activities require FCA authorization.
The regulator began accepting crypto authorization applications on September 30. Firms seeking to continue operating under the new rules must apply by February 28, 2027.
Separately, British authorities recovered £5.6 million from Hok Seng Ling in a cryptocurrency money-laundering case linked to Zhimin Qian’s investment scheme. Victims are also pursuing claims over approximately 61,000 Bitcoin seized by authorities, reportedly worth £3.8 billion.
Related: 82 Crypto Protocols Shut Down in 2026: Is the Industry Facing a Crisis?