Fintech, digital assets, payments and consumer credit | UK Regulatory Outlook July 2026

Fintech 

Money Laundering and Terrorist Financing (Amendment) Regulations 2026 

On 9 June 2026, the Money Laundering and Terrorist Financing (Amendment) Regulations 2026 were made. The regulations amend the Money Laundering Regulations 2017 and related provisions in the Terrorism Act 2000 and the Proceeds of Crime Act 2002. Key changes include: 

• Amendments to due diligence requirements and updating currency thresholds from euros to sterling. 
• Strengthening the AML regime for cryptoasset businesses, including new enhanced due diligence for cryptoasset correspondent relationships. 
• Changes to the Trust Registration Service to close identified gaps. 
• Changing the definition of "high risk third country" to "FATF call for action country". 

The regulations mostly came into force on 30 June 2026. The new enhanced due diligence requirements for cryptoasset correspondent relationships come into force on 1 February 2027. 

Payments  

FCA welcomes launch of UK Payments Initiative scheme for open banking payments 

On 2 June 2026, the FCA welcomed the launch of a new UK Payments Initiative (UKPI) scheme for recurring and automated open banking payments. 

UKPI is an industry-led company established to develop and operate a commercial scheme for variable recurring payments (VRPs) in the UK. The scheme establishes a shared rulebook, commercial model and operational standards for automated recurring account-to-account payments, which offer an alternative to traditional card-based and direct debit payments. The "phase 1" use cases include payments to the government, utilities, charities and financial services. 

The FCA considers the launch a significant step forward for open banking and commercial VRPs, and expects it to act as a catalyst for other schemes to emerge. 

RPIB consults on design of future retail payments infrastructure 

On 25 June 2026, the Retail Payments Infrastructure Board (RPIB) published a consultation paper on the design of the future UK retail payments infrastructure, as part of the Strategy for Future Retail Payments Infrastructure published by the Payments Vision Delivery Committee in November 2025. 

The RPIB considers the infrastructure's design from three perspectives: 

• Future payment journeys: what payment journeys should the core infrastructure support for end-users? 
• Design principles: what principles and characteristics should guide the design of core infrastructure? 
• The wider payments ecosystem: what role should the core infrastructure play within the wider UK payments ecosystem? 

The consultation closes on 11 September 2026. The Delivery Company is expected to progress the core infrastructure later in 2026. 

Digital assets  

FCA responds to questions on interaction between MLRs 2017 and new cryptoassets regulatory framework 

On 3 June 2026, the FCA published responses to questions from firms on how the Money Laundering Regulations 2017 interact with the forthcoming cryptoassets regulatory regime, which will require many cryptoasset firms to become fully authorised by the FCA for the first time. 

Areas covered include: 

• The regulatory perimeter and the transition period ahead of the new regulatory regime commencing on 25 October 2027. 
• Authorisation expectations and application quality. 
• Anti-money laundering governance, leadership and resourcing arrangements, together with anti-money laundering framework design and documentation. 
• Crypto-specific risk assessment and typologies. 
• The regulator's expectations in relation to transaction monitoring, blockchain analytics and surveillance tools. 

Regulation of systemic stablecoins 

On 22 June 2026, the Bank of England (BoE) published a policy statement on regulating sterling-denominated systemic stablecoins, including a consultation on a draft Code of Practice.  

In response to feedback since its November 2025 consultation, the BoE has made some changes to its policy. In particular: 

• on backing assets, the BoE has adjusted its position, aligning the regime with historical liquidity stress events; and 
• on holding limits, the BoE will introduce a temporary guardrail on the level of issuance per systemic stablecoin product, which it expects to loosen and eventually remove once credit provision risks have been effectively mitigated. 

The draft Code of Practice covers backing assets and safeguarding, capital and reserves, issuance, legal claim and redemption, remuneration, and the temporary issuance guardrail. Comments can be made until 22 September 2026, and the BoE plans to finalise the code by the end of 2026. 

The BoE and FCA have since published a joint paper (30 June 2026), explaining how the two parts of the UK stablecoin regime will operate in an integrated way.