What to Know
- All crypto firms in the UK must get authorised under the Financial Services and Markets Act (FSMA).
- The FCA’s crypto licensing gateway opens in September 2026, and firms that miss it will face limits.
- Crypto firms will need their own FCA approval to promote services in the UK; third-party promotion approvals won’t be allowed.
The United Kingdom is moving closer to a fully regulated crypto market. The country’s financial watchdog, the Financial Conduct Authority (FCA), has confirmed that it will open a new crypto licensing gateway in September 2026, ahead of a broader regulatory framework that will take effect in October 2027.
This move means crypto companies operating in or targeting the UK will need fresh approval to continue doing business. Existing registrations will not automatically carry over and firms that miss key deadlines could face strict limits on what they are allowed to offer.
What Is FCA Licensing?
Firms wishing to undertake any of the new cryptoasset regulated activities will need to be authorised the Financial Services and Markets Act 2000 (FSMA) with permission to undertake those activities at the point the new regime commences.
This will include firms that are registered under the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) and/or firms that are registered with or authorised by us under The Payment Services Regulations 2017 or The Electronic Money Regulations 2011.
The crypto licensing gateway will allow crypto companies to apply for approval under the UK’s upcoming crypto rules. The FCA expects this application period to open in September 2026. It will stay open for a limited time, giving firms a chance to submit their paperwork before the new rules officially begin in October 2027. The application window must be at least 28 days long or close at least 28 days before the new regime starts.
Registrations Will Not Carry Over
One of the biggest changes is that current approvals will not automatically convert into the new system. This includes companies that are already registered under: Anti-money laundering rules, payment services rules, and electronic money rules. Even if a company is already operating legally today, it must reapply and get approved again under the new framework.
The FCA has clearly stated that firms should not assume their current status protects them once the new regime begins. Some companies already have FCA approval for non-crypto financial services. These firms are not exempt. Without this update, they may lose the ability to offer crypto-related services in the UK. FCA highlighted, “In particular, firms that are registered with us under the MLRs should note that there will be no automatic conversion and that they will need to secure authorisation by us under FSMA prior to the commencement of the new regime.”
Crypto firms that currently rely on another approved company to sign off on their promotions will face new limits. Once the new regime begins, companies that want to market crypto products directly to UK customers will need their own FCA approval. Relying on third-party approvals will no longer be allowed.
Missing the Deadline
Companies that fail to apply during the application window will not be shut down immediately, but they won’t get a free pass either. These firms will enter a transitional phase, where they can continue offering existing products and serve current customers. However, they will not be allowed to launch new services or products until they receive full approval. The FCA has also warned that late applications will not be reviewed faster to make up for missed deadlines.
To help companies prepare, the FCA plans to run information sessions explaining the new rules and offer optional pre-application meetings at no cost. These meetings allow firms to explain their business model and understand what the regulator expects. However, they do not guarantee approval.
Final Thoughts
The full crypto regulatory regime is expected to start on 25 October 2027. From that date onward, only approved firms will be allowed to operate regulated crypto services in the UK. The FCA says the goal is to create a safer and more transparent crypto market while giving companies enough time to prepare.
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