FCA Opens Authorisation Gateway for Crypto Firms Under New UK Regime

The UK Financial Conduct Authority opened authorisation applications for cryptoasset firms on 30 September 2026, starting the application window for the country’s new cryptoasset regulatory regime. Firms that intend to continue operating in the UK should apply by 28 February 2027, ahead of the regime coming into force on 25 October 2027.

The FCA said the opening will bring crypto firms operating in the UK into full FCA regulation for the first time, with standards covering consumer protection, safeguarding, market integrity and financial resilience. It described the move as a step toward making the UK one of the most trusted places in the world to build and invest in cryptoasset businesses.

Authorisation is not automatic, the regulator said. Firms must clearly demonstrate that they meet its requirements, and those that cannot show the necessary standards will not be authorised to operate in the UK market. Applicants are assessed against FCA standards on consumer protection, safeguarding of customer assets, market integrity and financial resilience; firms that do not meet them will not be able to continue offering regulated cryptoasset services in the UK.

“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,” said Dominic Cashman, director of authorisation at the FCA.

Application Window and Transitional Terms

The FCA expects to determine applications submitted during the application period before the new regime comes into force. Existing firms that apply within the window can continue providing cryptoasset services, including taking on new business, while their application is assessed if no decision has been made before the regime takes effect.

The application window runs from 30 September 2026 to 28 February 2027 and connects to savings provisions in the Cryptoassets Regulations, which allow certain firms already operating in UK cryptoasset markets to continue specified activities for a limited period while they seek authorisation, subject to defined conditions and time limits. Firms that apply after the window closes will not be able to rely on these provisions and may need to cease the relevant activities until they are authorised, according to the FCA’s policy statement overview. To be authorised, a firm must show that it satisfies, and will continue to satisfy, the minimum standards in the Financial Services and Markets Act 2000, known as the Threshold Conditions.

The regime is underpinned by the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026, which Parliament passed on 4 February 2026. The regulations brought a broad range of cryptoasset activities within the FCA’s regulatory perimeter for the first time, moving beyond the anti-money-laundering and financial promotions standards that previously defined the regulator’s role in the market. The full scope of regulated activities under the regime expands from 25 October 2027.

In June 2026, the FCA published its final crypto rules and guidance across five policy statements: PS26/9 on admissions and disclosures and the market abuse regime for cryptoassets, PS26/10 on stablecoin issuance, PS26/11 on regulated cryptoasset activities, PS26/12 on the prudential regime, and PS26/13 on applying the FCA Handbook to cryptoasset firms.

Activities in scope include operating a qualifying cryptoasset trading platform, dealing in qualifying cryptoassets as principal or agent, arranging deals, custody and safeguarding of client cryptoassets, staking, lending and borrowing, and qualifying stablecoin issuance. Existing registrations do not convert automatically. Firms registered under the Money Laundering Regulations, authorised under the Payment Services Regulations or Electronic Money Regulations, or relying on a s.21 financial promotions approver must obtain authorisation under the Financial Services and Markets Act if they are within scope of a regulated cryptoasset activity. Since January 2020, cryptoasset exchange providers and custodian wallet providers operating in the UK have been required to register with the FCA under the Money Laundering Regulations; under the new regime, firms carrying on newly regulated activities will instead require FSMA authorisation and will no longer be required to register separately under those regulations.

The prudential framework introduces two new sourcebooks, COREPRU and CRYPTOPRU. In its final rules, the FCA changed the coefficient of the K-factor for stablecoin issuance, K-SII, from 2% to 1%, and set a single 40% net risk position requirement for cryptoassets that can be prudently valued and are admitted to a UK qualifying cryptoasset trading platform. UK-issued qualifying stablecoins are required to be fully backed and redeemable at par. The FCA states that cryptoassets are high-risk investments and will remain high-risk under the regime.

Support for Applicants and Remaining Work

The FCA is supporting firms preparing for authorisation through pre-application discussions and webinars available on demand. Under its pre-application support service, firms can request a free pre-application meeting, open to both UK and overseas cryptoasset firms, through FCA Connect. Meetings are held with a case officer who outlines the regulator’s expectations and signposts relevant information, and the FCA extended the service to cryptoasset firms ahead of the new regime on 13 May 2026.

Remaining policy work includes a consultation on managing cryptoasset firm failure, covering distribution rules that would apply where a stablecoin issuer or a cryptoasset custodian has failed, as well as updates to the FCA’s Financial Crime Guide on anti-money-laundering and know-your-customer obligations, tailored guidance on decentralised finance, and further development of regulatory reporting. The FCA also intends to undertake a formal review of the regime approximately two years after it comes into force to assess whether it is delivering its intended outcomes. Separately, the regulator lifted its ban on retail access to certain cryptoasset exchange-traded notes in October 2025 and has said it will keep its position on retail access to cryptoasset ETNs and derivatives under review.