UK cryptoasset regulation: what's changing, what isn't, and what to do now

HM Treasury's cryptoasset regulatory regime is taking shape. Here's what the policy note means in practice for UK firms, advisers, and holders — and what to prepare now.

Introduction

Back to Insights The UK Government has published a detailed policy note alongside the draft Financial Services and Markets Act 2000 (Regulated Activities and Miscellaneous Provisions) (Cryptoassets) Order 2025, setting out how cryptoassets will be brought within the UK's existing financial services regulatory framework. This is not a separate crypto law — it integrates cryptoassets into FSMA, the same legislation that governs banks, insurers, and investment firms. For holders, advisers, and professional firms, the practical question is: what does this actually change, what stays the same, and what should you do now? This article explains the direction of travel in plain English, connects it to crypto inheritance planning in the UK, and outlines the practical steps that matter most for digital asset estate planning.

Explore key topics

• What the policy note covers — and what it does not • How HM Treasury and FCA roles split • New regulated activities explained • What this means for advisers and professional firms • What this means for holders: record-keeping and continuity • Bitzo practical checklist • For professionals: what to do next • For families and executors: what to document

What the policy note covers — and what it does not

The HM Treasury policy note explains the intended outcomes of the draft Statutory Instrument (SI). It creates new categories of 'qualifying cryptoassets' and 'qualifying stablecoin' as specified investments, and defines several new regulated activities including operating a trading platform, dealing as principal or agent, arranging deals, safeguarding (custody), stablecoin issuance, and staking. As stated in the policy note, the draft SI is published "to aid the review of its provisions" and explain "the Treasury's intended policy outcomes." Importantly, this is a draft SI published for technical review. The final instrument may change before being laid before Parliament. The policy note is explicit that this should not be treated as final legislation. What it does not cover: portfolio management and investment advice for cryptoassets remain outside this phase. Decentralised finance (DeFi) models are acknowledged but not addressed with specific provisions at this stage. The planned market abuse and admissions and disclosures frameworks will be published separately.

How HM Treasury and FCA roles split

HM Treasury sets the legislative perimeter — which activities require authorisation and which assets are in scope. The FCA then writes the detailed rules, supervises firms, and enforces compliance within that perimeter. The SI grants the FCA (and PRA) early powers to issue directions, guidance, and rules before full commencement, so regulators can prepare the regime in advance. This does not bring forward compliance deadlines for firms — it allows the FCA to finalise its rulebook ahead of time. For professional firms advising on crypto estate planning or bitcoin inheritance in the UK, this split matters: Treasury defines what is regulated; the FCA defines how it is regulated. Both are moving, but neither is finished.

New regulated activities explained

The draft SI creates the following new regulated activities, each requiring FCA authorisation: 1. Operating a qualifying cryptoasset trading platform 2. Dealing in qualifying cryptoassets as principal (includes lending and borrowing) 3. Dealing in qualifying cryptoassets as agent 4. Arranging deals in qualifying cryptoassets (includes lending platforms) 5. Safeguarding (custody) of qualifying cryptoassets 6. Issuing qualifying stablecoin 7. Qualifying cryptoasset staking (includes liquid staking) The geographic scope is designed so that firms dealing directly or indirectly with UK consumers must be authorised, regardless of where the firm is based. Overseas firms serving only UK institutional customers are generally exempt. For non-custodial crypto security services like Bitzo — which coordinates documentation, verification, and continuity planning without holding assets — these new regulated activities do not apply directly. But they change the landscape around us.

What this means for advisers and professional firms

If you advise clients who hold crypto, this regulatory direction of travel matters for three reasons: 1. Client expectations will rise. Once crypto activities are regulated under FSMA, clients will expect their advisers to have a structured approach to digital assets — even if crypto advice itself remains outside your permissions. 2. Due diligence standards will tighten. If you introduce clients to crypto service providers, you will be expected to understand whether those providers are authorised and what protections apply. 3. Documentation and governance become non-negotiable. The regime signals that informal, undocumented approaches to crypto within professional relationships will not be sustainable. Practical actions for advisers: review your firm's position on crypto; add crypto triage questions to onboarding and annual reviews; understand what your professional indemnity covers; and establish a repeatable process for crypto inheritance planning discussions. See our guide for advisers (/advisers) for a structured approach.

What this means for holders: record-keeping and continuity

For individual holders, regulation does not change how your wallet works or where your keys are stored. What it changes is the environment around you: • Platforms you use may need to obtain FCA authorisation — or exit the UK market • Safeguarding (custody) services become regulated, with disclosure and complaints frameworks • Consumer protections will develop over time, but they do not replace your own operational planning The most important action for holders remains the same: ensure your digital assets are documented, your trusted contacts are verified, and your executors know what to do. Non-custodial crypto security is not affected by this regulation, but it becomes more important as the landscape professionalises. Related reading: Crypto Inheritance Planning UK (/insights/crypto-inheritance-planning-uk) covers the full documentation and verification workflow.

Bitzo practical checklist

Use this checklist to assess your readiness — whether you are a holder, adviser, or executor: 1. Map your crypto holdings: which wallets, which platforms, which custody model 2. Document access arrangements: who knows what, and what happens if you cannot act 3. Verify trusted contacts: identity-checked, documented, with defined roles 4. Create a continuity plan: step-by-step recovery workflows for incapacity or death 5. Review platform exposure: are your platforms likely to be UK-authorised, or might they exit? 6. Align with your will: ensure your estate plan acknowledges digital assets without exposing keys 7. Schedule periodic reviews: custody models, platform status, and contact details change Bitzo coordinates all of this without taking custody, without holding keys, and without providing financial or legal advice. Browse all our articles at /insights for more on non-custodial crypto security UK, crypto probate UK, and digital asset estate planning UK.

For professionals: what to do next

Advisers, solicitors, and accountants should: • Add a crypto discovery question to client onboarding and review processes • Establish whether clients' platforms and providers are FCA-registered (or plan to be) • Offer to coordinate a non-custodial continuity plan through a specialist like Bitzo • Document your firm's position: what you will and will not do regarding crypto • Monitor the FCA's consultation timeline — the permissions gateway is expected to open in September 2026 For a structured professional workflow, see our advisers page (/advisers) and the related article on FCA CP26/4 (/insights/fca-cp26-4-regulated-cryptoasset-activities-what-it-means-uk-professionals).

For families and executors: what to document

If you are a family member or executor, the regulatory changes do not require you to do anything new — but they reinforce why documentation matters: • Know which wallets and platforms exist (not the keys — just the fact they exist) • Know who the verified trusted contacts are and how to reach them • Have access to a continuity plan or Policy Pack that explains next steps • Understand that recovery is a process, not a single action — and that scam risks increase during stressful events • Never share seed phrases, private keys, or recovery codes with anyone who contacts you unsolicited Bitzo's role is to ensure these elements are in place before they are needed, and to coordinate verification when they are. For more on crypto estate planning UK, see our complete guide (/insights/crypto-inheritance-planning-uk). For further reference, see: HM Treasury: Cryptoasset Regulated Activities — Policy Note, HM Treasury: Draft SI and Policy Note (overview). Back to Insights