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

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. The "phase 1" use cases include utility payments, financial services payments, and payments to local and central government. 

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

Digital assets  

Financial Services Regulation Committee report on stablecoins 

On 3 June 2026, the House of Lords Financial Services Regulation Committee published a report on the regulation of stablecoins, following an inquiry launched in January.  

The Committee’s report includes findings that: 

• The UK is lagging behind the US and the EU in developing its regulatory regime. 
• The regulators must keep to current timelines and ensure that the final regulatory regime is not delayed. 
• There are several elements of the UK’s proposed regime – including requirements for systemic issuers to hold unremunerated backing assets, proposed stablecoin holding limits, and restrictions on commercial banks issuing stablecoins – which would diverge from international equivalents. 
• Authorities should consider whether existing legal frameworks are sufficient to detect and deter illicit activity using private unhosted and unregulated wallets, and should be prepared to legislate to restrict their use if necessary. 
• HM Treasury should set out more detail on how it will determine whether stablecoins are systemic. 

FCA responds to questions on interaction between money-laundering rules and future 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. 

Areas covered include: 

• The regulatory perimeter and the transition period ahead of the new regulatory regime commencing in October 2027. 
• Authorisation expectations and application quality. 
• Anti-money laundering governance, leadership and resourcing arrangements. 
• Anti-money laundering framework design and documentation. 
• Crypto-specific risk assessment and typologies. 
• Transaction monitoring, Blockchain analytics and surveillance tools. 
• Compliance with the Travel Rule. 

HM Treasury responds to industry concerns on implementing cryptoasset regulatory regime 

On 5 May 2026, HM Treasury published a letter responding to questions from the Crypto & Digital Assets All Party Parliamentary Group (APPG) about implementing the new cryptoasset regulatory regime. 

The APPG raised industry concerns about implementing all elements of the new framework simultaneously, and asked about potential transitional arrangements or phased implementation. 

HM Treasury considers that the planned timetable gives cryptoasset businesses time to prepare before the regime goes live on 25 October 2027, and refers to FCA provisions to support high-quality applications, including free pre-application meetings and prioritised resources. 

HM Treasury confirms that the FCA has been increasing resources to ensure it has the expertise needed to deliver its cryptoasset roadmap. 

FCA review of financial promotion approvers 

On 27 May 2026, the FCA published findings from its review of ten financial promotion approvers, concluding that firms should be doing more to protect consumers. The review focused on approvers of promotions for buy-now-pay-later, crowdfunding and corporate finance firms. 

Approvers are authorised firms permitted to approve financial promotions for unauthorised firms under rules in force since February 2024, and must ensure every promotion is clear, fair and not misleading. 

The strongest firms applied the Consumer Duty throughout and ensured promotions were accurate and appropriately targeted. However, some firms approved adverts with unsubstantiated claims or allowed retail investors to see promotions intended for professional clients. Following the review, one firm has carried out a remediation exercise and some websites have been blocked to retail customers. 

Consumer finance  

HMT policy statement on reforming Consumer Credit Act 1974 

On 18 May 2026, HM Treasury published a policy statement on its proposed reforms to the Consumer Credit Act. Please see Osborne Clarke's Insight for more information.