UK Financial Perimeter

Definition ∞ The UK Financial Perimeter defines the scope of activities and entities that fall under the regulatory oversight of the United Kingdom’s financial authorities, primarily the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). This perimeter determines which financial products, services, and firms are subject to UK financial regulations. It establishes the boundaries for consumer protection and market integrity within the nation. Activities outside this perimeter may operate with less regulatory scrutiny.
Context ∞ In the context of digital assets, the UK Financial Perimeter is a subject of ongoing debate as regulators work to determine which crypto-related activities should be brought within its scope. Currently, certain cryptoassets and services, like those involving security tokens, are regulated, while others remain outside. A key discussion involves expanding the perimeter to cover a broader range of cryptoasset activities, including stablecoins and certain types of crypto lending. Future legislative changes are expected to clarify and potentially broaden these regulatory boundaries.