The Financial Conduct Authority (FCA) opened the period on Wednesday (30) for crypto firms to apply for authorization under the new UK regulatory regime. The window ends on February 28, 2027, while the new rules come fully into force on October 25, 2027.
The change begins the operational stage of a reform that significantly expands the FCA's oversight of the sector. Trading platforms, custodians, stablecoin issuers and companies involved in trading, brokerage and staking are among the businesses that may need authorization, depending on the activities carried out in the UK.
The requirement also covers foreign companies that provide crypto services to British consumers. Companies already authorized for other financial activities will need to apply for an expansion of their permissions if they intend to operate in the new regulated categories.
One of the main effects is that existing registrations will not be converted automatically. Companies currently registered with the FCA under anti-money laundering rules will also have to obtain authorization under the Financial Services and Markets Act to continue carrying out activities included in the new regime.
Deadline determines who will have access to the transition
The FCA expects to review, before October 2027, the applications submitted within the window. If a decision is still pending when the new regime takes effect, firms already operating in the market may, when they meet the conditions set out, continue providing services and accepting new business while awaiting the final decision.
Companies will still be able to apply for authorization after February 28, 2027, but they will lose this more favorable position. If they reach October without the necessary permissions, they may enter the transitional regime, in which activity is limited to what is necessary to fulfill existing contracts. During this period, they will not be able to enter into new contracts with current or new British clients.
Those who decide not to seek authorization will have to wind down regulated activities in the UK in an orderly manner before the new rules take effect. According to the FCA, continuing to operate without authorization could constitute a violation of UK financial services rules.
Authorization will also not be automatic for those who submit an application. The FCA will assess companies on criteria that include consumer protection, custody of client assets, market integrity and financial soundness. Companies that do not demonstrate the ability to meet the standards will not be able to continue offering regulated crypto services in the country.
With the opening of the gateway, the regulatory decision is no longer just a matter of future preparation. Exchanges, custodians, stablecoin issuers, fintechs and international groups now need to decide which activities they will keep in the UK market and present the necessary structure to obtain authorization.
