UK Opens Crypto Authorisation Gateway, Bringing Sector Under Full FCA Oversight for the First Time
Key Takeaways
- •The FCA began accepting authorisation applications from crypto firms, the first step toward full regulatory oversight of the sector in the UK.
- •The crypto regime, finalized by the FCA in June, is scheduled to take effect in October 2027, with the early gateway opening giving firms time to align their operations with incoming rules.
- •Applicants must demonstrate compliance with requirements covering consumer protection, the safeguarding of customer assets, market integrity, and financial resilience.
- •The announcement builds on the UK's formal recognition of bitcoin and other digital assets as property last year, which stemmed from a 2023 Law Commission recommendation, with the new FCA regime setting conduct standards for firms.
- •The UK remains behind the EU, where MiCA has applied to crypto service providers since December 30, 2024, and the US, where the GENIUS Act establishing a framework for dollar-backed tokens was signed in July 2025.
The United Kingdom's Financial Conduct Authority (FCA) has begun accepting authorisation applications from crypto firms, marking the first time the sector will operate under full regulatory oversight in the country.
In a Wednesday announcement, the regulator said companies can now apply, a step intended to give the crypto industry “clarity and legitimacy.”
The move comes as the UK drafts a sweeping new crypto bill. The FCA finalized its regulatory framework for cryptoassets in June, with the regime scheduled to take effect in October 2027. Opening the gateway well ahead of that date gives firms time to align their operations with the incoming rules.
“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,” said Dominic Cashman, the FCA's director of authorisation, in a statement.
Applicants will need to demonstrate that they meet requirements covering consumer protection, the safeguarding of customer assets, market integrity, and financial resilience, according to the statement.
The announcement builds on broader legislative momentum in Britain, which last year formally recognized bitcoin and other digital assets as property. That reform stemmed from a 2023 recommendation by the Law Commission, which concluded that digital assets did not fit neatly into existing legal categories. Where that change addressed the legal status of the assets themselves, the FCA regime will set conduct standards for the firms serving the market.
Even so, the UK remains behind both Brussels and Washington on digital asset regulation. The European Union's Markets in Crypto-Assets (MiCA) regulation has applied to crypto service providers since December 30, 2024.
In the United States, President Donald Trump signed the GENIUS Act into law in July 2025, establishing a federal framework for dollar-backed tokens. And although lawmakers blocked the landmark Clarity Act last month, U.S. regulators, including the Securities and Exchange Commission, have continued advancing rulemaking regardless.
In the UK, the next markers will be the bill's progress and the FCA's handling of the first wave of authorisation applications ahead of the regime's October 2027 start.
This article was originally published by Bitcoin Magazine and was written by Mathew Di Salvo.
