Quick Breakdown
- FCA requires crypto firms to obtain FSMA authorisation before the new UK regulatory regime begins.
- Pre-application support and information sessions will guide firms on compliance and permission variations.
- Transitional and saving provisions allow continued operations for firms while applications are under review.
The UK Financial Conduct Authority (FCA) is establishing a formal gateway for firms seeking to operate under the country’s upcoming cryptoasset regulatory regime.
Firms must secure authorisation ahead of the new regime
Firms wishing to undertake regulated crypto activities must be authorised under the Financial Services and Markets Act 2000 (FSMA) before the new rules come into effect. This includes businesses currently registered under the Money Laundering Regulations 2017 (MLRs), the Payment Services Regulations 2017, or the Electronic Money Regulations 2011.
The FCA clarified that existing registrations will not automatically convert to FSMA authorisation. Firms already authorised for other activities will need to vary permissions to align with the new regime.
Information sessions and application process
The FCA plans to host information sessions to guide firms through authorisation requirements, standards, and expectations. Sessions target existing MLR-registered firms, those authorised under FSMA needing permission variations, and firms not yet registered but potentially subject to the new rules.
A pre-application support service (PASS) will allow firms to hold optional, free meetings with the FCA to present their business model and discuss the authorisation process.
The application period is expected to open in September 2026 and will last at least 28 days. Firms submitting during this period will have applications determined prior to the regime’s commencement, though transitional and saving provisions will allow continued operations in certain circumstances until decisions are final. Firms applying outside the designated period will not receive expedited assessments and must comply with transitional provisions until authorisation is granted.
The FCA emphasises that all cryptoasset firms must notify the authority when they utilise saving provisions and when they cease to do so, ensuring regulated compliance during the transitional phase.
The crypto regime lands amid broader reforms aimed at expanding retail investment participation. On December 8, 2025, the FCA unveiled a comprehensive package to remove barriers that have left participation at around 25% among UK adults.
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