UK Sets out Regulation Framework for Crypto Firms

The UK’s Financial Conduct Authority has outlined how crypto firms must apply for authorisation ahead of the new regulatory regime. The framework introduces a formal application window, transitional rules, and stricter marketing requirements.

FCA Details Entry Process for New Crypto Regime

The United Kingdom’s Financial Conduct Authority (FCA) has published fresh guidance explaining how the gateway for the country’s upcoming crypto-asset regulatory regime will operate, setting out what firms must do to continue serving U.K. customers once the rules take effect.

Under the new framework, any firm seeking to carry out regulated crypto-asset activities will need authorisation under the Financial Services and Markets Act 2000 (FSMA) when the regime begins. This requirement applies not only to new entrants, but also to firms already registered under the U.K.’s anti-money laundering rules or authorised under existing payments and e-money regulations.

The FCA stressed that there will be no automatic conversion for firms currently registered under the Money Laundering Regulations. Those firms must secure full FSMA authorisation before the new regime starts. Similarly, companies already authorised under FSMA for other activities will need to vary their permissions to cover crypto services.

To support firms ahead of the transition, the FCA plans to host information sessions explaining how the regime will work, its regulatory expectations, and the application process. The regulator is also offering optional, free pre-application meetings through its pre-application support service, allowing firms to discuss their business models and prepare higher-quality submissions.

Read more: UK Regulator to Finalize Crypto Rules, Advance Stablecoin Framework in 2026

An official application window will open ahead of the regime’s launch. The FCA expects this period to begin in September 2026 and last at least 28 days. Applications submitted during this window are expected to be decided before the regime starts. The FCA said further details will be confirmed through formal directions published on its website.

FAQ 🇬🇧

• What is the FCA’s new crypto regime about?

It requires all crypto firms serving UK users to obtain full FSMA authorisation.

• Do currently registered crypto firms get automatic approval?

No, firms under AML or other regimes must reapply for authorisation.

• When can firms apply under the new framework?

The FCA plans to open an application window from September 2026.

• How is the FCA supporting firms ahead of the transition?

It is offering guidance sessions and optional pre-application support meetings.