The UK Financial Conduct Authority began accepting authorization applications from crypto firms on Wednesday, opening the first formal path into the country’s new full regulatory regime for the sector.
Existing firms that want to continue operating in the UK should apply by Feb. 28, 2027. The new regime is scheduled to take effect on Oct. 25, 2027. The FCA said it expects to decide on applications submitted within that period before the start date.
If an existing firm applies on time and the FCA has not reached a decision by the time the regime begins, that firm can continue providing crypto services and can also take on new business while its application remains under review.
Approval will depend on four assessment areas
The regulator said authorization is not automatic. Each applicant will be assessed on four points: consumer protection, safeguarding customer assets, market integrity, and financial resilience.
Firms that do not meet the standard will not be authorized and will not be allowed to continue offering regulated crypto services in the UK.
In a statement, Dominic Cashman, the FCA’s director of authorisation, 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."
The FCA also said firms can ask for a pre-application support meeting before filing. Its webinars explaining the rules are also available on demand.
What led to this application window
The FCA published its final crypto rules and guidance in June. On Sept. 16, it issued final guidance setting out which activities will require FCA approval. Those activities include issuing qualifying stablecoins, running trading platforms, safeguarding crypto, and arranging staking, as Unchained previously reported.
At that time, the FCA said existing registrations and permissions would not automatically carry over into the new regime.
A day before that guidance was published, HM Treasury released draft amendments that would place payments using UK-issued qualifying stablecoins outside the licensing requirements for dealing and arranging. The draft also proposed exemptions for some firms that only provide interfaces to decentralized protocols. The FCA said it would consult on changes to reflect those amendments.