The United Kingdom has begun a major new phase in its regulation of the cryptocurrency industry, with the Financial Conduct Authority (FCA) opening its formal authorization process for cryptoasset businesses. The move comes ahead of a new regulatory framework scheduled to take effect on October 25, 2027.
Crypto firms that want to continue operating in the UK are expected to submit their applications by February 28, 2027. The FCA said it expects to make decisions on applications submitted during this period before the new framework comes into force.
The regulator stressed that applying will not automatically result in authorization. Firms will need to demonstrate that they meet the standards required under the new regime before they can continue providing regulated crypto services in the UK.
Dominic Cashman, the FCA’s director of authorization, said: “The U.K.’s new crypto regime will give consumers greater protections and firms a clear framework to operate in. Firms can now apply for authorization and start preparing for regulation.”
New Framework Brings Wider FCA Oversight
The new regime will significantly expand the FCA’s oversight of the crypto sector. Previously, the regulator’s involvement largely focused on areas such as anti-money laundering requirements and financial promotions.
Under the new framework, regulation will cover a broader range of activities, including stablecoin issuance, cryptoasset trading platforms, dealing and intermediation, custody and staking arrangements.
The FCA will also assess how firms protect customer assets, manage risks, prevent market manipulation, and maintain sufficient financial resilience.
These requirements are intended to establish stronger safeguards for consumers while providing businesses with clearer rules for operating in the UK.
When the FCA finalized its rules in June, David Geale, executive director of payments and digital finance at the regulator, said: “We’ve created a framework that doesn’t force firms to choose between regulatory certainty and room to innovate—this regime means they can have both in a stable, competitive home to build and grow.”
