Nikolas Sargeant
Financial authorities in the United Kingdom have established a timeline for a comprehensive cryptocurrency licensing framework, requiring companies to secure full authorization well before regulations take effect or face transitional restrictions on new service offerings.
Crypto asset service providers will be able to apply for authorization under the UK's crypto licensing regime starting this autumn, the Financial Conduct Authority announced Thursday. "We expect the application period will open in September 2026," the FCA stated, adding the timeline will be confirmed in due course.
The FCA's authorization gateway will offer a limited processing window before the regime goes live on October 25, 2027. All companies providing regulated crypto asset services in the UK will need authorization under the Financial Services and Markets Act, including entities currently registered under existing Money Laundering Regulations and payment-related frameworks.
"In particular, firms that are registered with us under the MLRs should note that there will be no automatic conversion and that they will need to secure authorisation by us under FSMA prior to the commencement of the new regime," the FCA emphasized, clarifying that existing registrations will not automatically convert under the new framework.
Companies already FCA-authorized under FSMA for providing other regulated activities will need to vary their existing permissions before the new regime commences. The regulator also specified that crypto firms currently relying on another authorized company to approve their financial promotions will need to obtain direct FCA authorization to market products in the UK.
The FCA requires cryptocurrency companies to apply within a designated window lasting at least 28 days and closing no later than 28 days before the new regime starts. Applications submitted during this period are expected to receive decisions before the framework takes effect. Draft legislation includes a "saving provision" allowing businesses to continue operating while their applications are assessed.
Companies that miss the application window or lack authorization when the regime begins will fall under transitional rules permitting existing products but restricting new offerings. Late applicants can still submit applications, but the FCA warned they may face longer assessment timelines and operational limitations during the review period.
The announcement provides cryptocurrency businesses operating in the UK with approximately 15 months to prepare applications and secure necessary authorizations before the comprehensive regulatory framework becomes mandatory. The structured timeline reflects the FCA's approach to transitioning the sector from lighter-touch registration requirements toward full authorization comparable to traditional financial services.
