UK crypto firms will have five months to apply for Financial Conduct Authority (FCA) approval before Britain’s wider cryptoasset regime is expected to begin. The application window opens on September 30, 2026, and closes on February 28, 2027. The full regime is scheduled to start on October 25, 2027.

Existing registration under the UK’s anti-money-laundering framework will not automatically become authorisation. Covered firms will therefore need to submit new applications or amend existing FCA permissions. Firms that apply within the window may continue specified activities while the regulator assesses their applications, provided they meet all relevant conditions. Firms that apply after the deadline will not qualify for those saving and transitional provisions and may need to pause affected regulated services until authorisation is granted.

The FCA opened a pre-application support service in July to help prospective applicants prepare before filing. Applying on time does not guarantee approval, and the regulator has not promised to reach a decision before the new regime begins. Firms will therefore need to plan around both the filing deadline and the possibility that their applications remain under review when the regime takes effect.

Scope of the FCA authorisation process

The framework applies to regulated cryptoasset activities carried out in the UK. It covers crypto firms, FCA-authorised companies, and certain firms that approve financial promotions. Activities within scope include trading venues, intermediaries, custodians, stablecoin issuers, lending services, and some staking providers.

Applicants must satisfy the FCA’s threshold conditions. The new rules establish requirements covering prudential standards, governance, conduct, safeguarding, and operational resilience. They also include requirements for the assets backing stablecoins and for redemptions, as well as disclosure rules for assets offered or admitted to trading. Market-abuse controls will apply alongside those obligations. The key preparation task for each applicant is to map its UK activities and business model to the relevant permissions and controls before filing.

The policy package expands the FCA’s role in the crypto sector. To date, the regulator’s remit has focused primarily on anti-money-laundering controls and financial promotions. The new UK crypto regulation brings a broader range of activities into the financial-services rulebook. Firms will need to align their applications with the activities and business models they intend to operate.

Wider changes to UK crypto access

The approval deadline comes as traditional investment platforms introduce limited crypto exposure. Hargreaves Lansdown began offering eligible clients nine Bitcoin and Ether crypto exchange-traded notes (ETNs) on September 3. The listed notes provide price exposure without requiring investors to purchase the underlying coins or control private keys.

Access is limited to Hargreaves Lansdown’s Advanced Investing service. Customers must self-certify as advanced investors, complete a product-risk assessment, and observe a 24-hour cooling-off period. The launch followed the FCA’s October 2025 decision to allow retail customers to access qualifying crypto ETNs. Those products are separate from the new authorisation process for firms operating regulated cryptoasset activities.

The FCA has also proposed allowing certain authorised funds to hold up to 10% of their assets in crypto ETNs. It has not proposed permitting those funds to own crypto directly. The fund proposal is separate from the retail-access rules and would not remove the FCA approval obligations for firms providing regulated services.

Offshore platforms must decide whether to seek UK authorisation for activities covered by the regime. Binance has been linked to plans for an FCA licence application, although the exchange has not publicly confirmed that it has filed one. Existing FCA restrictions on Binance Markets Limited remain in place.

Zumo founder and chief executive Nick Jones said clearer rules could attract more established financial firms. In a letter to the Financial Times, he identified regulatory uncertainty and partner risk as barriers, and said firms would need compliant local partners and stronger operating systems. These comments represent Jones’s assessment and are not an FCA finding.

Separately, the US Securities and Exchange Commission proposed cryptoasset rules on August 18. The proposal addresses certain investment contracts and possible exemptions from securities registration. The SEC continues to accept public comments. The US proposal does not change the FCA approval requirements facing UK crypto firms.

Source: Blockonomi