Cryptoasset firms operating across both the EU and UK face the challenge of navigating two distinct but related regulatory frameworks. The EU's Markets in Crypto-Assets Regulation (MiCA) has been fully applicable since December 2024, while the UK's FSMA-based cryptoasset regime takes effect on 25 October 2027, under the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026. The FCA published its final rules in June 2026 (PS26/9 to PS26/13). This article provides a practical, requirement-by-requirement comparison to help firms develop an efficient dual-market compliance strategy.
| Area | MiCA (EU) | UK regime |
|---|---|---|
| In force | 30 December 2024 for CASPs | 25 October 2027 |
| Who authorises | National regulator in the home member state | FCA |
| Decision time | 25 working days to check completeness, then 40 working days to decide | FCA aims to decide window applications before 25 October 2027 |
| Market access | Passport across the EU | UK only; no passport to or from the EU |
| Minimum capital | €50,000, €125,000 or €150,000 by service class | £75,000 to £750,000 by activity; £350,000 for stablecoin issuers |
| Stablecoins | E-money tokens and asset-referenced tokens | New activity of issuing qualifying stablecoins |
| Conduct | MiCA conduct rules | FCA Handbook, including the Consumer Duty |
| Senior management | MiCA management body rules | SM&CR applies in full |
Authorisation and Licensing
MiCA (EU). Cryptoasset service providers (CASPs) must obtain authorisation from the national competent authority in their home EU member state. MiCA defines ten categories of cryptoasset services, and authorisation is granted on a service-by-service basis. Once authorised, CASPs can passport their services across all EU member states. Under Article 63 of MiCA, the regulator has 25 working days to check an application is complete and 40 working days to decide on a complete application, with the clock pausing for up to 20 working days while it waits for further information. MiCA's transitional periods ended by 1 July 2026, so firms now need full authorisation to operate. See our guides to MiCA CASP authorisation and Lithuania CASP authorisation.
UK FSMA regime. Cryptoasset firms must obtain FSMA authorisation from the FCA. The UK regime defines regulated activities relating to qualifying cryptoassets, covering operating a trading platform, dealing as principal or agent, arranging deals, safeguarding, staking and issuing qualifying stablecoins. There is no passporting from the UK to the EU: firms must obtain separate authorisation in each jurisdiction. The FCA application window runs from 30 September 2026 to 28 February 2027, and the FCA aims to decide applications made in that window before the regime starts on 25 October 2027. Later applications may not be decided before go-live. See our guide to UK cryptoasset authorisation. Until then, firms need FCA cryptoasset AML registration to operate in the UK.
Capital Requirements
MiCA. Capital requirements are set directly in the regulation: €50,000, €125,000 or €150,000 depending on the class of service. Firms must hold the higher of that minimum and one quarter of the previous year's fixed overheads.
UK. The FCA's final prudential rules (PS26/12, published 30 June 2026) set permanent minimum requirements by activity: £75,000 for arranging deals and dealing as agent; £150,000 for operating a trading platform, safeguarding and arranging staking; £350,000 for issuing qualifying stablecoins; and £750,000 for dealing as principal. Firms must hold the highest of the permanent minimum, an activity-based requirement and their own risk assessment.
Conduct of Business
Both regimes impose conduct of business requirements covering fair treatment, clear communications, conflicts of interest, and complaints handling. MiCA's conduct requirements are detailed in the regulation itself and supplemented by technical standards. The UK regime applies FCA Handbook rules, including the Consumer Duty and SM&CR, to authorised cryptoasset firms (PS26/13).
The key practical difference is the UK Consumer Duty, which goes beyond MiCA's conduct requirements in several areas: requiring firms to demonstrate that products deliver good outcomes, provide fair value and support customer understanding. Firms operating in both markets should design their conduct frameworks to meet the Consumer Duty standard, which will likely exceed MiCA requirements in most areas.
Stablecoin Regulation
MiCA. Creates two specific categories: asset-referenced tokens (ARTs) and e-money tokens (EMTs). ARTs require specific authorisation; EMTs must be issued by credit institutions or EMIs. Both categories have detailed reserve, redemption and disclosure requirements.
UK. The UK creates a new regulated activity of issuing a qualifying stablecoin from the UK. The FCA's final rules (PS26/10) cover backing assets, which must be held on statutory trust, and redemption. Stablecoins that become systemic in payments will also be regulated by the Bank of England, which is consulting on its rules.
AML and Financial Crime
Both MiCA and the UK regime require comprehensive AML/CFT frameworks. In the EU, CASPs are covered by the AML rules and by the Transfer of Funds Regulation (EU) 2023/1113, which has applied the travel rule to crypto transfers since 30 December 2024 with no minimum threshold. The UK continues to apply the MLRs 2017, including the travel rule in Part 7A, with an £800 threshold for some originator details.
Developing a Dual-Market Strategy
Firms operating in both markets should:
- Map the requirements of both regimes side by side for each area of compliance.
- Identify the higher standard for each requirement and build the compliance framework to that standard.
- Implement a unified technology and governance infrastructure that can serve both regulatory environments.
- Maintain jurisdiction-specific policies where the regimes diverge (e.g., stablecoin classification, specific reporting requirements).
- Engage with regulators in both jurisdictions early in the authorisation process.
Regulatory Counsel advises cryptoasset firms on dual-market regulatory strategy, MiCA compliance and UK FSMA authorisation. Contact us for a written proposal.
Frequently asked questions
No. There is no passporting arrangement between the EU and UK for cryptoasset services. Separate authorisation is required in each jurisdiction.
Both are comprehensive. The UK applies the Consumer Duty and SM&CR, which go further on conduct and personal accountability, and its capital minimums are higher for most activities. Firms should build to the higher standard in each area.
MiCA has applied in full since 30 December 2024, and transitional periods ended by 1 July 2026. The UK regime takes effect on 25 October 2027. The FCA application window runs from 30 September 2026 to 28 February 2027.
Yes. MiCA uses e-money token and asset-referenced token categories. The UK creates a separate activity of issuing qualifying stablecoins, with FCA rules in PS26/10 and Bank of England rules for systemic stablecoins. Firms issuing in both markets must meet both.
Under Article 63 of MiCA, the regulator has 25 working days to confirm an application is complete and 40 working days to decide on a complete application. The clock can pause for up to 20 working days while the regulator waits for information.
Under PS26/12, the permanent minimum ranges from £75,000 for arranging deals or dealing as agent to £750,000 for dealing as principal. Stablecoin issuers need £350,000, and firms must hold more where their activity or risk assessment requires it.
Definitive guides on this topic
The permanent reference pages this article relates to.