The UK's Financial Conduct Authority (FCA) has announced a definitive roadmap for regulating crypto asset service providers (CASPs), with the application window for a new licensing regime set to open in September 2026. The full regulatory framework is scheduled to take effect on October 25, 2027.
A critical aspect of the new rules is that there will be no automatic transition for firms currently operating under existing regulations. Companies registered under the UK's Money Laundering Regulations (MLRs), as well as those authorized under the Financial Services and Markets Act (FSMA) for other activities, must reapply for specific authorization to offer crypto services. Firms already holding FCA authorization must formally vary their permissions to include crypto assets.
The FCA has outlined a strict application timeline. The gateway will be open for at least 28 days and will close no later than 28 days before the regime commences. Firms that submit their applications within this period can expect a decision before October 2027. A "saving provision" will allow businesses to continue operating while their applications are under review.
However, firms that miss the application deadline or fail to secure approval will face significant restrictions. They will be placed into a transitional regime, which only permits them to service existing contracts and explicitly bars them from launching new products or services. The FCA has warned that late applications will not receive expedited reviews.
Additionally, the FCA clarified that crypto firms will no longer be permitted to rely on third-party authorized firms to approve their financial promotions. To market to UK customers, they must secure direct FCA authorization. To assist with the transition, the regulator plans to host information sessions and offer optional pre-application meetings, though these do not guarantee approval.
