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This article examines the UK’s upcoming regulatory regime for crypto-assets under the Financial Services and Markets Act 2023 (FSMA) and the FCA’s Discussion Paper (DP25/1), focusing on what it means for cross-border fund managers. It outlines the new authorisation requirements for activities such as crypto trading, custody, stablecoin issuance, staking, and DeFi-related services, and emphasizes the broad territorial scope that may impact EU-based firms, including those operating from Luxembourg.
It also highlights the importance of understanding the regime’s transitional arrangements, expected to begin in late 2025, and the need to prepare for its full implementation by end-2026. The article provides a practical perspective on how regulated AIFMs can adapt, particularly when engaging with UK investors or crypto service providers, and details how 6 Monks (6M) supports clients in structuring compliant operations across jurisdictions.
Read the full article here.