FCA Handbook - CRYPTO 2.1 Application and purpose

You are viewing CRYPTO 2.1 Application and purpose as it appeared on 25/10/2027. The current version of CRYPTO 2.1 Application and purpose was last updated on 25/10/2027.

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CRYPTO 2.1 Application and purpose

(1) This chapter of CRYPTO contains rules and guidance relating to qualifying stablecoin activities.
(2) CRYPTO 2 is relevant to qualifying stablecoin issuers.
(3) CRYPTO 2 applies as described in this section unless the application provisions of a section or a rule make it clear that the section or rule in question is applied differently.

Purpose

The purpose of this chapter is to set out the detailed obligations which are specific to the activity of issuing a qualifying stablecoin.

The detailed obligations which apply to the activity of issuing a qualifying stablecoin aim to ensure (among other things):

(1) that the holder of a qualifying stablecoin will always have a claim for the redemption sum of their qualifying stablecoin against a qualifying stablecoin issuer;
(2) that there is sufficient transparency by a qualifying stablecoin issuer about matters which are important to:
1. (a) the stability of a qualifying stablecoin; and
2. (b) the ability of a potential holder of a qualifying stablecoin to make an informed decision as to the risks, benefits, rights and obligations associated with becoming a holder of that asset.

Who?

This chapter applies to a firm that is issuing a qualifying stablecoin.

What?

All the rules in CRYPTO 2 apply in relation to any qualifying stablecoins within a qualifying stablecoin product that includes a UK qualifying stablecoin.

The definition of qualifying stablecoin product refers to a category of fungible qualifying stablecoins that make up a single product. A qualifying stablecoin product may include pre-issued stablecoins.

A firm which relies on another person (a ‘third party’) to carry out any part of the activity of issuing a qualifying stablecoin must ensure that all of the activities described in article 9M of the Regulated Activities Order are carried out in a way that complies with the rules in CRYPTO 2 and CASS 16.

Where?

This chapter applies to a firm issuing a qualifying stablecoin by way of business in the UK.

CRYPTO 2.1.8R applies whether or not the person to whom a qualifying stablecoin is issued or who becomes the holder of that qualifying stablecoin is in the UK.

Point In Time

25/10/2027