The UK's Financial Conduct Authority (FCA) has proposed new rules for the crypto sector, which could expand the definition of custody and potentially impact platforms and software providers that don't consider themselves as custodians. The rules include a 24-hour limit on custody, which will likely lead to a full safeguarding license for any firm holding client assets longer than a day during trade settlement. The regulator has also addressed the "shadow custody" issue, stating that if a crypto service provider allows it to theoretically override a client's authority, it is officially a custodian. The regulations will require companies to transition from current money-laundering registrations systems to a stricter approval regime under the U.K.