The 24-hour trap: Why the UK’s new crypto rules could catch some firms off guard
The UK’s FCA is introducing new crypto regulations that classify firms holding assets over 24 hours as custodians, requiring full licensing.Summary
The UK’s Financial Conduct Authority (FCA) has issued new guidance that could significantly broaden the definition of crypto custody. Under the proposed rules, any platform or app holding client assets for more than 24 hours during settlement will be classified as a custodian, necessitating a formal safeguarding license. The guidance also removes technical exemptions for validators and node operators who provide added features like dashboards or yield-compounding tools. Additionally, the FCA clarified that services with the theoretical ability to override client authority are considered custodians, regardless of decentralization claims. Firms have until June 3, 2026, to provide feedback before the rules are finalized later this year, with an application window for new approvals running from September 2026 to February 2027.
(Source：CoinDesk)