A new survey reveals that UK cryptocurrency firms are significantly unprepared for the regulatory requirements set to take effect in October 2027. According to the Zumo UK Regulatory Preparedness Assessment, only 10% of platforms consider themselves fully ready for compliance, despite 90% planning to apply for authorization once the Financial Conduct Authority’s (FCA) application platform opens in September 2026.
The study, echoed by CryptoUK research, found that 70% of firms view losing access to the UK market as a key risk. Half of the surveyed firms expressed concerns about financial penalties or regulatory sanctions, and a similar number worry about losing revenue or market share. Zumo’s founder and CEO Nick Jones highlighted the “gap between ambition and execution,” noting that while ambition is high, actual preparedness lags. Approximately 60% of firms are still assessing the rules, leaving little room for error as the deadline approaches.
CryptoUK, the UK crypto industry body, emphasized the urgency for firms to strengthen their compliance processes. The findings point to a potential shakeout if companies fail to meet the new standards, which could reshape the competitive landscape.
