UK FCA Issues Cryptoasset Perimeter Guidance, Introduces 24-Hour Custody Threshold

The UK Financial Conduct Authority (FCA) has released its Cryptoasset Perimeter Guidance, setting out how most cryptoasset activities are expected to come within the scope of the Financial Services and Markets Act by October 25, 2027. A key feature is a 24-hour custody threshold: any firm or platform that holds client assets for more than one day during trade settlement will be treated as a regulated custodian and must obtain a full safeguarding licence. The FCA also addressed \u0022shadow custody\u0022 for the first time. A crypto service provider will be classified as a custodian if it has the theoretical ability to override a client's authority, even where it states it will never use that power. Validators and node operators will cease to qualify for a technology-only exemption once they add \u0022value added\u0022 features such as user dashboards, yield offerings, or reward-compounding tools. On stablecoins, issuance will be allowed only where the issuer is established in the UK and controls the full lifecycle from offering through redemption.