FCA opens door to regulated crypto firms, with 2027 deadline for approval
Crypto businesses operating in the UK must now seek formal FCA authorisation, as regulators set out a timetable running to October 2027.
New regime begins
Crypto firms operating in the UK can, from today, apply to the Financial Conduct Authority for formal authorisation, as the regulator moves to bring the sector under full oversight for the first time.
Under the new framework, firms will have to meet FCA standards on consumer protection, safeguarding of customer assets, market integrity and financial resilience. The watchdog has said authorisation will not be automatic, and any firm unable to demonstrate it meets these requirements will not be permitted to continue offering regulated cryptoasset services in the UK.
Key dates for firms
Firms wanting to keep operating in the UK market have been told to submit their applications by 28 February 2027. The new regulatory regime itself comes fully into force on 25 October 2027, and the FCA says it expects to have decided on applications submitted within the window before that date.
Existing firms that apply during this period will be allowed to keep providing cryptoasset services, including taking on new customers, while their application is being assessed, provided a decision has not yet been made by the time the regime takes effect.
What it means for consumers
For people who hold or trade cryptoassets, the move is intended to bring protections that have not previously existed in this part of the market. Bringing firms into the FCA’s remit means they will be judged against the same kind of standards applied elsewhere in regulated financial services, covering how customer funds are safeguarded and how firms manage risk.
Dominic Cashman, the FCA’s director of authorisation, said: “The UK’s new crypto regime will give consumers greater protections and firms a clear framework to operate in. Firms can now apply for authorisation and start preparing for regulation.”
Support for firms applying
The FCA says it is helping firms get ready for the new requirements, including through pre-application discussions and webinars that are available on demand. Firms can also request a dedicated pre-application support meeting ahead of formally applying.
The regulator’s final rules and guidance for the crypto sector were published in June 2026, setting the groundwork for today’s opening of the authorisation gateway.
What happens next
Firms now have until the end of February 2027 to lodge applications if they want to keep operating in the UK beyond the start of the new regime. The FCA will assess each application against its stated standards, with authorisation decisions expected before the regime formally takes effect on 25 October 2027. Those firms that fail to meet the bar will not be authorised to continue offering cryptoasset services to UK customers, meaning the shape of the UK’s regulated crypto market will become clearer over the coming two years as applications are processed.