UK 2027 Crypto Rules Allow Firms to Remove Trust Protection for Yield-Bearing Bitcoin

Starting October 25, 2027, the UK's new crypto regulatory regime will distinguish between Bitcoin held as collateral and assets transferred for yield. Under the framework, firms can exempt qualifying lending services from trust requirements, meaning customers may lose certain protections if a platform fails. The Financial Conduct Authority has opened the application process for firms to vary their permissions, though the new safeguards are not yet in effect.