UK FCA Opens Crypto Authorisation Applications Ahead of October 2027 Regime
Key Takeaways
- 01The FCA will open applications for authorisation under the new cryptoasset regime on 30 September, ahead of the framework taking effect on 25 October 2027.
- 02The guidance helps firms assess whether activities such as qualifying stablecoin issuance, operating trading platforms, dealing, custody and staking may require FCA authorisation.
- 03Crypto firms should map current and planned services against the new authorisation perimeter and begin preparing for an FCA application.
- 04Until the new regime applies, UK-connected businesses carrying out in-scope cryptoasset exchange or custody activities generally need FCA registration under the anti-money-laundering rules.
- 05Crypto communications accessible to people in the UK can be within regulatory scope, including communications made by offshore firms.
The Financial Conduct Authority (FCA) has issued guidance on the UK’s new cryptoasset regulatory regime and will open applications for authorisation on 30 September. The full regime is scheduled to take effect on 25 October 2027, giving firms a route to seek approval before the new rules become operational.
The guidance is designed to help crypto businesses determine whether their existing or planned services will need FCA authorisation under the expanded framework. It covers qualifying stablecoin issuance, operating cryptoasset trading platforms, dealing in cryptoassets, custody services and staking-related activities.
Firms planning to operate in these areas should compare their business model with the FCA’s proposed authorisation perimeter and prepare for the application process. Final requirements remain subject to implementation of the new rules, but the opening of applications is a significant step towards the 2027 regime.
The future framework is being developed through government and FCA consultations during 2025 and 2026. It will go beyond the current anti-money-laundering registration system, under which the FCA supervises certain crypto businesses under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs).
For now, the MLRs require FCA registration before certain cryptoasset exchange providers and custodian wallet providers can operate in the UK. Exchange activity generally includes exchanging cryptoassets for money or other cryptoassets, or operating automated exchange machines. Custody includes safeguarding cryptoassets or customers’ private cryptographic keys. These requirements generally apply to UK companies and businesses with a sufficient physical UK presence, such as staff or offices.
Dealing in cryptoassets does not automatically require MLR registration. Registration is generally needed when a business carries on in-scope exchange or custody activity. Firms considering registration should allow for an application fee of about £10,000, annual fees starting at about £2,000, and the legal, professional and continuing compliance costs of meeting FCA requirements.
Crypto-related communications may also fall within UK regulatory scope if they can be accessed by people in the UK. This may apply to UK and overseas firms, whether or not they actively target UK users.