FCA Opens Five-Month Authorisation Window for UK Crypto Firms

The UK's financial regulator has given crypto companies five months to apply for FCA authorisation if they want their applications assessed before the new crypto regulatory regime starts.

The Financial Conduct Authority started accepting applications today, September 30, with the new regulatory regime coming into force on October 25, 2027.

Start Now to Make It in Time

According to the FCA's announcement, firms that plan to continue operating in the UK should submit applications by February 28, 2027, ahead of the new regime coming into force.

The regulator recommends starting as early as possible, as a strong application can take time to prepare. It should clearly define the operating model, describe the products offered, and identify customer segments and sources of funding.

Applicants will also have to show how their businesses will meet regulatory expectations in practice. Firms that fail to demonstrate the necessary standards will not be authorised to conduct regulated crypto asset activities in the UK.

According to Dominic Cashman, Director of Authorisations at the FCA, “the UK’s new crypto regime will give consumers greater protections and firms a clear framework to operate in.”

From AML Registration to Full Authorisation

At present, crypto activity in the UK is regulated primarily through anti-money laundering and financial promotion rules. Crypto exchanges and custodian wallet providers conducting business in the country must register with the FCA under the Money Laundering Regulations.

This registration focuses on financial crime controls and is not equivalent to full authorisation under the Financial Services and Markets Act.

Crypto promotions made to UK consumers must also comply with the FCA’s rules, including when they originate from an overseas company.

The new regime will bring a broader range of activities inside the FCA’s regulatory perimeter. Trading platforms, intermediaries, custodians, qualifying stablecoin issuers and firms arranging staking will require authorisation.

Existing AML registrations and other regulatory permissions will not convert automatically. Authorised firms will become subject to parts of the FCA Handbook covering the Consumer Duty, conduct of business, senior management accountability, operational resilience and financial crime controls.

Activity-specific requirements will address areas including best execution, custody and safeguarding, stablecoin backing and redemption, prudential resources, admissions and disclosures, and cryptoasset market abuse.

Applications Protect Access to Transitional Arrangements

Firms applying by February 28 may continue operating even if the FCA has not decided their applications before the deadline. This provision is intended to prevent disruption to existing businesses while their applications are under review.

However, those that won't make it within the five-month window will not receive the same protection and may have to stop operations until authorisation is granted. The FCA said it would review applications in the order received.