The FCA has opened its authorization gateway for crypto firms in the UK, with applications due by Feb. 28, 2027, ahead of new rules in October 2027.
Crypto Regulation News
Crypto firms in the United Kingdom can now apply for full authorization from the Financial Conduct Authority (FCA), the regulator announced on Sept. 30. The gateway did not exist before, and it moves crypto businesses out of a narrower Anti-Money Laundering registration process and into the FCA's full regulatory framework.
Firms operating in the UK will now be assessed against FCA standards covering consumer protection, safeguarding of customer assets, market integrity, and financial resilience. Until now, most UK crypto firms interacted with the regulator only through the Anti-Money Laundering registration system, a narrower framework focused on preventing financial crime rather than full prudential oversight.
Companies that want to keep operating in the UK must submit their applications by Feb. 28, 2027. The new regulatory regime takes full effect on Oct. 25, 2027, giving firms roughly five months to file before that deadline arrives.
Dominic Cashman, director of authorization at the FCA, said the new regime gives consumers stronger protections and firms a clear operating framework, adding that companies can now begin the authorization process. Authorization will not be automatic. Firms that cannot demonstrate they meet the FCA's requirements will be denied permission to operate in the UK market.
What Firms Must Demonstrate
Existing firms that submit an application during the window can continue operating and taking on new customers while the FCA reviews their case, as long as a decision has not been reached before the new regime formally begins. This gives companies already serving UK customers a path to keep functioning during the review period rather than facing an abrupt cutoff.
The FCA finalized its crypto rules and guidance in June 2026, laying out the standards firms will be measured against. The regulator has also been offering pre-application support, including one-on-one discussions and webinars, to help companies prepare their submissions before the gateway opened.
Firms that hold custodian roles, meaning they safeguard customer crypto assets directly, will face particular scrutiny under the new framework's safeguarding standards. The FCA's rules are also designed to strengthen Anti-Money Laundering (AML) compliance across the sector, building on the registration regime that has applied to UK crypto firms since 2020.
Further Reading:
Path to Full UK Regulation
The shift represents a broader change in how the UK treats crypto businesses. Rather than a narrower compliance check focused on financial crime, firms will now need to prove they can meet ongoing standards similar to those applied to other regulated financial services companies, including requirements around custody of client funds.
The FCA said it expects to determine applications submitted during the window before the new regime comes into force on Oct. 25, 2027. Firms that fail to meet the required standards will not be authorized to continue offering regulated cryptoasset services in the UK once the regime takes effect.
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