FCA opens crypto authorization window with February 2027 deadline
The UK Financial Conduct Authority (FCA) began accepting authorization applications from crypto firms on 30 September, with existing firms needing to apply by 28 February 2027 to keep operating under the new regime that takes effect on 25 October 2027, the regulator said in a statement.
The gateway applies to every crypto firm serving UK customers: exchanges, custodians, staking services and stablecoin issuers. Firms that miss the deadline would be unable to continue offering regulated cryptoasset services in the UK, as reported when the window opened. Applying is not a formality, either: the FCA said firms will have to demonstrate they meet requirements covering consumer protection, customer-asset safeguarding, market integrity and financial resilience.
The MLR carry-over point comes from the industry side rather than the regulator. Emma Banymandhub, chief executive of The Payments Association, warned that registration under the Money Laundering Regulations will not carry over into the new authorization, so even firms already registered with the FCA for anti-money-laundering purposes face a fresh, non-guaranteed application process. She said a “well-run, proportionate authorisation process will be important to maintaining the UK’s competitiveness and building a trusted market for digital assets”.
Transitional cover while applications are assessed
There is a safety net for firms that apply in time. Those that do can continue providing specified cryptoasset services, including taking on new customers, while their applications are under review, provided they meet the relevant transitional conditions. The FCA expects to decide applications submitted during the window before the regime starts.
The transitional conditions themselves are not detailed in the FCA’s statement, so firms cannot treat continued operation as automatic.
Scope goes well beyond AML
Parliament expanded the FCA’s regulatory perimeter in February 2026 to cover stablecoin issuance, custody, trading platforms, dealing and arranging, and staking. After consultation through 2025 and early 2026, the regulator published its final framework in June 2026, adding requirements around market abuse, prudential standards, cryptoasset admissions and disclosures, and consumer protection.
The FCA is offering pre-application support and webinars for firms preparing submissions. It has not stated how long individual applications will take to decide, and no applicant firms have been named so far.
