UK Sets Clear Timeline for FCA Crypto Licensing Regime

In Brief

• FCA to open crypto licensing gateway in September 2026 ahead of 2027 launch.
• Existing crypto registrations must reapply, as no automatic authorization will apply.
• Late applicants may face limits on new UK crypto business after October 2027.

Britain has confirmed a fixed schedule for a nationwide crypto licensing framework under financial law. The plan requires all crypto firms to secure full FCA approval before operations continue after October 2027.

The Financial Conduct Authority will open an application gateway for crypto firms in September 2026. This window allows firms to apply early and receive regulatory decisions before the regime begins.

All companies providing regulated crypto services must obtain authorization under the Financial Services and Markets Act. Existing registrations under money laundering rules will not convert into permissions under the new system.

Firms already licensed for traditional finance must update permissions to include crypto activities. Crypto firms relying on third-party promotion approvals must also secure direct FCA authorization.

Applications submitted during the gateway should receive decisions before the rules take effect. If reviews extend beyond launch, firms may continue operations temporarily under saving provisions.

Late applicants may enter a transitional regime with limits on new UK business. During transition, firms may service existing contracts but cannot offer new regulated products.

Rulebook Development and Market Overview

The government has introduced legislation bringing cryptoassets formally under FCA supervision. Accordingly, the FCA is preparing a crypto-specific rulebook and related guidance.

Further consultations will follow before final rules are issued later this year. Meanwhile, market sentiment weakened as selling pressure returned across major digital assets.

Bitcoin traded at $90,913, posting a 1% daily gain during the session. Ethereum held near $3,114, showing marginal upward movement.

Source: X

The Fear and Greed Index stayed at 27, signalling continued market caution. Overall crypto market capitalisation stood at $3.19 trillion, with liquidations reaching $236 million.