The UK’s Financial Conduct Authority (FCA) will open its long-awaited crypto licensing gateway in September 2026, giving firms just over a year to secure full authorisation before a new regulatory regime takes effect in October 2027.
Under the upcoming framework, existing registrations held under anti-money laundering or payments rules will not automatically carry over, marking a significant compliance shift for cryptoasset firms operating in or targeting the UK market.
The FCA confirmed that firms wishing to undertake any newly regulated cryptoasset activities must be authorised under the Financial Services and Markets Act 2000 (FSMA) by the time the new regime begins.
This requirement applies even to companies currently registered under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 (MLRs), as well as firms authorized or registered under the Payment Services Regulations 2017 or the Electronic Money Regulations 2011.
In particular, the regulator stressed that MLR registration will not convert into FSMA authorisation.
Firms relying solely on AML registration will need to submit a fresh application and receive approval before October 2027 to continue operating without restrictions.
Companies that fail to secure authorisation by the deadline will be placed into a transitional regime, allowing them to continue offering existing services on a limited basis.
However, these firms will face restrictions on launching new products, expanding services, or engaging in certain regulated activities until full approval is granted.
The FCA also noted that firms already authorised under FSMA for other regulated activities must apply to vary their existing permissions to include cryptoasset activities ahead of the regime’s commencement.
Separately, the watchdog confirmed a major change to crypto marketing rules. Crypto firms that currently rely on another FCA-authorised firm to approve their financial promotions, known as a Section 21 approver, will no longer be permitted to do so. To continue marketing to UK customers, these firms will need to obtain direct FCA authorization.
The phased timeline is intended to give the industry sufficient preparation time while strengthening regulatory oversight and consumer protection in the UK crypto market.