Crypto16 September, 20263 min read
FCA Opens Crypto Authorization Window for UK Firms Ahead of October 2027 Regime
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FCA opened its crypto-authorization gateway on September 30, 2026, for UK firms. Applications must be submitted by February 28, 2027 to continue operating.
FCA opens authorization window
The United Kingdom Financial Conduct Authority opened its formal authorization application window for cryptoasset firms on September 30, initiating a comprehensive review process ahead of a new regulatory regime scheduled to take effect on October 25, 2027. The FCA required firms that intend to continue operating in the UK to complete their application procedures by February 28, 2027, and it said authorization would not be granted automatically. The FCA said the new regime would cover stablecoin issuance, operation of cryptoasset trading platforms, dealing and intermediation, custody, and staking arrangements, shifting oversight beyond anti-money laundering measures and financial promotions rules.
Dominic Cashman, the FCA's Director of Authorizations, said, "The UK's new cryptoasset regime will provide stronger protections for consumers and give firms a clear framework in which to operate," as the authorization process moved from rulemaking to individual firm reviews. Emma Banymandhub, CEO of The Payments Association, stressed that firms must treat the process as a new authorization step because "existing registrations under Money Laundering Regulations will not automatically transfer to the new regime."
Deadlines and transitional access
The FCA opened its “authorization gateway” on Wednesday and gave firms until the end of February 2027 to register, with the five-month application period preceding the planned introduction of the new framework in October 2027. CoinDesk said the FCA expects to decide applications submitted during that window before the regime takes effect, while the FCA also said firms that submit during the window may continue providing specified cryptoasset services while their applications are assessed if no decision has been reached when the regime starts. The FCA said firms that fail to submit required applications by the deadline would not benefit from continuity measures, and it warned that authorization would not be automatic or guaranteed merely by submitting documents within the deadline.
Cointelegraph quoted Dominic Cashman saying, "The UK’s new crypto regime will give consumers greater protections and firms a clear framework to operate in," as the regulator expanded oversight beyond anti-money laundering and financial promotion requirements. Cointelegraph also quoted Emma Banymandhub urging businesses already registered under money laundering regulations to treat it as a fresh authorization process, saying, "MLR registration will not carry over, and firms should be realistic about the standards they will need to meet,"
What the FCA will assess
The FCA said the new regime would assess each firm's client asset management controls, safeguards against market manipulation, and capital resilience based on the nature of their business, and it said the process would bring crypto activities under full financial supervision. BigGo Finance said the FCA planned to assess each firm's client asset management controls and safeguards against market manipulation, while it also said the new regime would shift to full authorization reviews under the Financial Services and Markets Act. Money Marketing said firms applying during the authorization window could continue providing crypto services, including taking on new business, while their applications are assessed if a decision has not been reached before the new regime comes into force.
The FCA said firms that fail to meet its requirements would be unable to offer regulated cryptoasset services in the UK, and it said the framework was designed to give investors greater protection while creating a clearer regulatory environment for firms operating in the UK’s crypto market. Emma Banymandhub said the gateway moves policy into practical delivery, and she argued that "Success now depends on effective implementation, particularly for the smaller and scaling firms that play an important role in UK innovation," as the authorization process begins.