With the FCA's application window set to close on February 28, executives who went through MiCA say slow and unpredictable approvals are the real risk
UK crypto firms have a deadline circled in red: 11:59 p.m. on February 28, 2027. That is when the Financial Conduct Authority’s authorization gateway closes for firms that want to keep running, or start running, regulated cryptoasset businesses under the country’s new regime.
The UK timeline and the fine print
The FCA opened its application window on September 30, 2026. That gives firms roughly five months to get their paperwork in. The new regime, which sits under the Financial Services and Markets Act (FSMA), takes effect on October 25, 2027.
The detail many firms may have hoped to avoid is this one. Existing registrations under the Money Laundering Regulations, or MLR, do not automatically convert into FSMA authorization. Firms already registered with the FCA for anti-money laundering purposes must either apply from scratch or modify existing permissions to fit the new framework.
The new process also asks different questions. The old MLR regime focused on financial crime. The FSMA regime puts consumer protection and market integrity at the center, which means firms will be judged on a wider set of criteria than before.
Firms may continue operating while their applications are evaluated during the window.
Capital requirements for UK crypto firms range from £75,000 to £750,000, depending on the type of activity a firm conducts. Stablecoin issuers face a set minimum of £350,000.
What Europe’s MiCA rollout actually looked like
MiCA’s transitional period ended on July 1, 2026. When the dust settled, the EU had approximately 213 licensed crypto-asset service providers, or CASPs, across the bloc.
The more striking number concerns the biggest players. Only 16 of the top 100 exchanges by trading volume hold MiCA licenses.
The FCA is already showing its teeth
On October 29, 2026, the regulator secured a court order against crypto exchange HTX, barring it from making unauthorized promotions to UK customers. That action came under existing rules, before the new regime even begins.
What this means for firms and users
Late filers face two problems at once. They compete for reviewer attention with every other firm that waited, and they have less room to fix issues the FCA flags. Missing the February 28 cutoff entirely is a more serious matter, since the window is how firms secure their place in the new regime.
Stablecoin activity stands out. The £350,000 minimum for stablecoin issuers signals that the FCA views this category as one requiring meaningful reserves.
The key dates to watch are February 28, 2027, when the gateway closes, and October 25, 2027, when the regime goes live.
