Crypto investors gain critical protection in bankruptcy, even as a “conservative” rule threatens liquidity

The UK Treasury has set October 2027 for its full cryptoasset regime, requiring exchanges and custodians to obtain FCA authorization under FSMA-style rules, a timeline criticized by some as too slow compared to the EU's MiCA. The new rules define specific regulated activities, including operating a Cryptoasset Trading Platform (CATP) and offering staking as a service, which forces firms to integrate compliance into their operations. Simultaneously, the Property (Digital Assets etc) Act 2025 clarified that certain digital assets are recognized as personal property, giving investors clearer recourse in bankruptcy, which aids institutional custody planning ahead of the 2027 regulatory deadline. However, a proposed conservative stablecoin model from the Bank of England, requiring systemic issuers to hold significant reserves in unremunerated Bank of England deposits, could compress margins and favor offshore USD-denominated stablecoins, potentially threatening domestic liquidity. Industry figures are concerned the regulatory push might lead to an aggressive, traditional finance-style enforcement era, though the Treasury suggests a more calibrated approach.

(Source：CryptoSlate)