Financial Markets and Funds Partner Christopher Collins offered insights to multiple media outlets on the challenges facing cryptocurrency businesses seeking authorization under the Financial Conduct Authority’s (FCA) new regulatory regime, set to go live in October 2027.

Chris highlighted a key area of uncertainty for firms considering an overseas Qualifying Cryptoasset Trading Platform (QCATP) model, which would allow businesses to operate an FCA-authorized UK branch of an existing overseas platform alongside a British subsidiary for non-branch activities. As reported by CoinDesk, the model is designed to preserve access to global liquidity by allowing UK customers to trade through established overseas platforms rather than a ring-fenced UK pool, which Chris noted should lead to better pricing and outcomes for UK customers.

He noted, however, that the FCA's requirement for a "comparable level of regulatory protection" from the home regulator lacks sufficient specificity for firms to plan effectively. As quoted across multiple outlets, Chris stated, "That isn't enough clarity for firms to build a business model, as they will want to know if the existing jurisdiction of their global platform, which may well have been up and running for years, will be acceptable to the FCA before they begin dedicating resources to the additional UK footprint."

Broader difficulties crypto companies face under the new regime include capital adequacy requirements, market abuse prevention systems, and a compressed application window running from September 30 to February 28, 2027.

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