The Financial Conduct Authority opened applications for the UK’s new cryptoasset regime on 30 September, beginning the process of bringing in-scope crypto firms into full FCA regulation.
Firms that intend to operate in the UK should apply by 28 February 2027, ahead of the new regime coming into force on 25 October 2027. The FCA published its final cryptoasset rules and guidance in June.
Authorisation isn’t automatic. Firms will need to show that they meet the FCA’s requirements on consumer protection, safeguarding customer assets, market integrity and financial resilience. Firms that fail to meet the standards won’t be authorised to continue carrying out relevant regulated cryptoasset activities.
Dominic Cashman, director of authorisation at the FCA, said: “The UK’s new crypto regime will give consumers greater protections and firms a clear framework to operate in. Firms can now apply for authorisation and start preparing for regulation.”
Existing firms that apply within the window may, subject to the relevant conditions, continue specified cryptoasset activities while their applications are assessed. The FCA is running pre-application discussions and webinars to help firms prepare, and firms can request a pre-application support meeting before applying.
The FCA’s materials say firms already registered under the Money Laundering Regulations shouldn’t assume that registration will carry over. Existing registrations won’t automatically convert into authorisation under the new framework.
Emma Banymandhub, chief executive of The Payments Association, said the opening of the gateway moved the new policy into practical implementation.
“The opening of the Financial Conduct Authority’s cryptoasset authorisation gateway moves policy into practical delivery, with firms now able to begin their applications if they want to continue operating with cryptoassets in the UK.”
Banymandhub said firms should be realistic about the standards they would need to meet. She added that the association welcomed a regime that reflected concerns raised by its members, who had pushed for rules proportionate enough to protect consumers without holding back growth.
The operational burden is likely to fall heavily on firms’ reconciliation and monitoring systems, according to David Reilly, sales and relationship manager at AutoRek .
“Firms should be running daily reconciliations across every transaction now,” Reilly said, ahead of an expected surge in applications before the February deadline.
The FCA says firms that miss the application window cannot rely on the relevant savings provisions . Reilly said firms that cannot secure authorisation would then face a wind-down of their existing UK business rather than being able to take on new customers.
