The UK’s Financial Conduct Authority has opened applications for crypto firms to become authorized, bringing the sector under full regulation for the first time.
In a Wednesday announcement, the regulator said companies can now apply so the crypto industry has "clarity and legitimacy." The UK is also drafting a broad new crypto bill.
Framework finalized in June, start date set for October 2027
The FCA finalized its regulatory framework for cryptoassets in June, and the regime is due to take effect in October 2027.
"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," Dominic Cashman, director of authorisation at the FCA, said in a statement.
The statement said firms will need to demonstrate that they meet requirements covering consumer protection, customer-asset safeguarding, market integrity, and financial resilience.
Broader digital asset law reform is still moving forward
Britain has been advancing digital asset legislation since last year, when bitcoin and other digital assets were recognized as property. That reform followed a 2023 recommendation from the Law Commission, which said digital assets did not fit neatly into existing legal categories.
UK still trails the EU and the U.S.
Despite the FCA announcement, the UK remains behind Brussels and Washington on digital asset regulation.
The European Union’s Markets in Crypto-Assets regulation has applied to service providers since December 30, 2024. In the United States, President Donald Trump signed the GENIUS Act into law in July 2025, creating a federal framework for dollar-backed tokens.
Although lawmakers blocked the landmark Clarity Act last month, U.S. regulators including the Securities and Exchange Commission have continued with rulemaking.
This article first appeared on Bitcoin Magazine and was written by Mathew Di Salvo.