UK FCA opens crypto authorisation gateway, with applications due by Feb. 28, 2027

The UK Financial Conduct Authority (FCA) opened its authorisation gateway for crypto firms on Sept. 30 (local time). Firms that want to operate crypto trading platforms or provide intermediary or custody services in the UK must apply by Feb. 28, 2027, and the new regime becomes mandatory on Oct. 25, 2027. Once it takes effect, crypto firms in the UK will be brought into full FCA regulation for the first time. Until then, the FCA's oversight is limited to anti-money laundering controls and financial promotions.

"The UK's new crypto regime will give consumers greater protections and firms a clear framework to operate in."

Dominic Cashman, FCA director of authorisation

A five-month application window

The FCA stressed that authorisation is not automatic. Firms will be assessed against four sets of standards — consumer protection, safeguarding of customer assets, market integrity and financial resilience — and those that fall short will not be authorised and will not be able to continue offering regulated cryptoasset services in the UK. Firms that already hold other FCA permissions can apply to vary those permissions instead of seeking a new authorisation.

Existing firms that apply within the window can keep providing crypto services, including taking on new business, under transitional provisions while their applications are still being assessed after the regime starts. The FCA said it will not expedite its assessment of late applications. It is offering pre-application support meetings and webinars to firms preparing to apply.

Money laundering registration is not enough

Crypto firms operating in the UK today only need to register with the FCA under the Money Laundering Regulations (MLRs). The regulator said there will be no automatic conversion of those registrations, and registered firms must secure separate authorisation under the Financial Services and Markets Act (FSMA). From Sept. 30, it is encouraging firms to focus on FSMA authorisation rather than new MLR registrations, and it said firms should not apply for registration after July 31, 2027. Because its deadline for deciding registration applications is three months, later applications are unlikely to be decided before the new regime begins. Firms that file both applications together pay a single fee at the higher rate.

From trading platforms to stablecoin issuers

The final rules the FCA published on June 30 cover firms that let people buy, trade and hold crypto, trading platforms, intermediaries, custodians, stablecoin issuers and staking services. All firms face capital requirements and stress testing, and new rules target insider dealing and market manipulation. Stablecoins, which peg their value to currencies such as the pound, will be subject to "clear, strong and transparent standards" meant to build trust in how they are used.

On Sept. 16 the FCA issued separate guidance on how the rules apply to stablecoin issuance, trading platforms, safeguarding and staking. "We are building a crypto regime that firms, consumers and international partners can trust," David Geale, the FCA's executive director of consumers, payments and competition, said at the time. The FCA said it will consult in October on guidance updates reflecting legislative amendments.

South Korea's Virtual Asset User Protection Act took effect on July 19, 2024. Under that law, Korean exchanges must keep customers' won deposits with banks and store at least 80% of customers' crypto, measured by economic value, in cold wallets disconnected from the internet. The UK's new regime brings trading platform authorisation, stablecoin issuance and staking under a single framework.

About 1 in 12 UK adults own crypto

According to a UK crypto market report the FCA published in July, about 8% of UK adults, or 4.5 million people, owned crypto as of August 2025. The average holding was estimated at £2,250, but most people held less than £1,000 and around 16% held more than £5,000. Some 49% of holders said they would buy more crypto if the market had additional regulatory protections.

The UK banned the sale of crypto-linked exchange traded notes (ETNs) to retail investors in January 2021 and lifted the ban on Oct. 8, 2025. Retail investors can only buy products traded on an FCA-approved UK investment exchange, and the products are not covered by the Financial Services Compensation Scheme (FSCS).