The UK’s Financial Conduct Authority opened applications for crypto firm authorization on September 30, ahead of a broader regulatory framework starting next year. Firms seeking to continue operating in the UK should apply by February 28, 2027. The regulator will assess whether applicants meet its requirements before allowing them to provide regulated cryptoasset services under the new framework.
The new crypto regime will take effect on October 25, 2027. It introduces standards covering consumer protection, customer asset safeguarding, market integrity and financial resilience. These requirements expand the FCA’s oversight beyond its existing anti-money laundering and financial promotion rules.
The FCA published its final crypto rules and guidance in June 2026. Those rules set out requirements for businesses conducting activities within the new framework and give firms time to prepare before regulation begins.
However, submitting an application does not guarantee approval. Firms must demonstrate that they meet the regulator’s standards. Businesses that fail to meet those requirements will not receive authorization and cannot continue offering regulated cryptoasset services in the UK.
Dominic Cashman, the FCA’s director of authorization, said, “The UK’s new crypto regime will give consumers greater protections and firms a clear framework to operate in.”
He added, “Firms can now apply for authorization and start preparing for regulation.”
Firms must establish whether their current or planned activities fall within the new rules. Their existing regulatory status will also determine which application route they need to follow, according to Arjun Lakhani, counsel at law firm Sidley.
Businesses that currently hold FCA registration under the Money Laundering Regulations must apply for full authorization with the relevant permissions. Their existing registration will not automatically carry them into the new regime.
Meanwhile, firms that already hold FCA authorization may need to change their existing permissions to include newly regulated cryptoasset activities. This distinction means businesses must review both their services and their current permissions before applying.
The FCA expects to decide applications submitted during the application period before the October 2027 start date. Nevertheless, the framework includes arrangements for existing businesses whose applications remain under assessment when the rules begin.
Existing firms that submit a valid application during the window can continue providing cryptoasset services while awaiting a decision. They can also take on new business during that period, subject to the transition arrangements.
The FCA offers pre-application discussions to help businesses prepare their submissions. Firms can request a support meeting before applying. The regulator also provides recorded webinars explaining its rules and the authorization process.
Alongside those resources, UK crypto services platform Zumo launched a UK Cryptoasset Regulation Tracker following the opening of applications. The company said the tracker maps individual obligations to the regulated activities they cover and updates that mapping as further regulatory papers appear.
The Payments Association also welcomed the opening of applications. Chief executive Emma Banymandhub said the framework would give consumers greater transparency and access to a formal complaints process.
However, Banymandhub said effective implementation would determine its success. She also called for a proportionate approach to support payment stablecoins and the UK’s plans to develop its digital asset sector.
For applicants, the next step is to identify the relevant permissions and prepare evidence that their businesses meet the FCA’s requirements.
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