UK FCA begins accepting crypto authorization applications

The UK Financial Conduct Authority has begun accepting authorization applications from crypto firms operating in the UK as the country moves toward a new regulatory regime for crypto assets, according to a press release issued on Sept. 30.

The UK’s new crypto regime has been built through legislation, FCA rulemaking and two years of preparation. Parliament formally expanded the watchdog’s regulatory perimeter in February 2026 to cover activities including stablecoin issuance, custody, trading platforms, dealing and arranging, and staking.

The FCA spent 2025 and early 2026 consulting on the rules before publishing its final framework in June. It then issued further guidance on which firms and activities require authorization and released application materials ahead of the gateway opening.

Sandy Jones, director of digital assets at Baillie Gifford, said the FCA’s move to implement its crypto regime came at an important time for the UK’s digital-asset sector.

“A sustainable digital assets industry depends on regulated firms that institutions can trust. This makes the FCA’s latest step in operationalizing its crypto regime a significant milestone in its work to support the growth and competitiveness of UK financial markets. Combined with the FCA and BoE’s significant push towards tokenization, the UK now sits in a renewed position of strength,” Jones said in a statement.

“The direction of travel is clear. The challenge now is for firms to credibly demonstrate that they can operate at the standards expected of a regulated financial services firm,” he added.

The framework will introduce requirements covering consumer protection, customer asset safeguarding, market integrity and financial resilience. Firms that want to continue operating in the UK will need to apply by Feb. 28, 2027, with the new regime scheduled to take effect on Oct. 25, 2027.

Existing firms that submit applications during the transition period can continue providing crypto asset services, including taking on new customers, while their applications are under review if the FCA has not reached a decision by the start of the new regime.

The FCA said firms must demonstrate that they meet its standards to receive authorization. The regulator is offering pre-application support and webinars, while firms that do not meet the requirements will be unable to continue offering regulated cryptoasset services in the UK.

This article has been updated with a comment from Sandy Jones, Baillie Gifford’s director of digital assets.