Financial authorities in the United Kingdom set a timeline for a new crypto licensing regime, requiring aspiring companies to seek full authorization before the framework comes into force.
Crypto asset service providers (CASPs) will be able to apply to enter the UK under the crypto licensing regime starting this fall, the Financial Conduct Authority (FCA) said Thursday.
“We expect the application period will open in September 2026,” the FCA noted, adding that the timeline will be confirmed in due course.
The FCA’s gateway will offer a limited window for applications to be processed before the regime goes live, expected on Oct. 25, 2027.
Existing registrations won’t convert automatically under FCA gateway
Under the plan, all companies providing regulated crypto asset services in the UK will need to be authorized under the Financial Services and Markets Act (FSMA).
The authorization requirement includes crypto entities currently registered under existing Money Laundering Regulations (MLRs) and payment-related frameworks, the FCA noted, adding:
“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.”
Companies that are already FCA-authorized under FSMA for providing other regulated activities will need to “have varied their existing permissions before the commencement of the new regime.”
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The regulator also said crypto firms that currently rely on another authorized company to approve their financial promotions will need to obtain direct FCA authorization to market products in the UK.
Companies missing the application window may face restrictions
The FCA requires crypto companies to apply within a set window, at least 28 days long, and closing no later than 28 days before the new regime starts.
Applications submitted during this period are expected to be decided before the regime comes into force. Draft legislation includes a “saving provision,” allowing businesses to continue operating while their applications are assessed.
Companies that miss the window or are not authorised when the regime begins will fall under transitional rules, permitting existing products but restricting new offerings. Late applicants can still apply, but the FCA warned they may face longer assessment timelines.
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