Key Highlights
- The FCA plans to open the UK’s crypto licensing application window in September 2026, ahead of the full crypto regime launch in October 2027.
- All crypto firms, including those already registered under money laundering rules, must reapply for full FCA authorization under the new regime.
- There will be no automatic conversion of existing registrations, and FCA-authorized firms must update permissions to continue crypto activities.
The UK’s Financial Conduct Authority (FCA) has laid out how crypto companies will be brought into a new, fully regulated system, marking a major shift for the industry.
In an official announcement, the FCA stated that it expects to open its application window, known as the crypto “gateway”, in September 2026, ahead of the new crypto regime, which is due to take effect in October 2027. Once the new rules begin, any company offering regulated crypto services in the UK will need to be authorized under the Financial Services and Markets Act (FSMA).
This requirement applies not only to new crypto businesses, but also to firms already registered under the UK’s anti-money laundering regime and those authorized under payment or e-money regulations.
All crypto firms start over
The FCA also clarified that existing registrations will not automatically carry over. Every firm in scope will need to apply again and meet the standards of the new framework.
For firms that are already authorized by the FCA to provide traditional financial services, the process will involve varying their current permissions to cover crypto activities.
Meanwhile, crypto companies that currently depend on other FCA-authorized firms to approve their financial promotions will no longer be allowed to operate that way. To continue marketing crypto products to UK customers, they will need to secure their own FCA authorization.
Key dates to watch
The FCA said the application period will run for at least 28 days and will close at least 28 days before the new regime starts. The goal is to give the regulator time to review applications and issue decisions before the rules take effect.
If an application is submitted during this window but has not been decided in time, the firm may be able to keep operating under a legal “saving provision” while the FCA completes its review.
What happens if firms miss the window
Firms that miss the application window or fail to gain approval before the regime begins will fall into a transitional period.
During this phase, they will be allowed to continue servicing existing customers and contracts, but they will not be permitted to launch new regulated crypto services until they are authorized. The FCA also warned that late applications will not be fast-tracked, meaning companies that delay could face restrictions on their business activities in the UK market.
The regulator plans to run information sessions and offer optional pre-application meetings to help firms understand what will be expected of them.
While these sessions can help companies prepare stronger applications, the FCA stressed they are not a guarantee of approval and that firms remain responsible for meeting all regulatory requirements.
Also Read: Can Budget 2026 Bring India’s Crypto Activity Back Home?
