UK FCA opens crypto authorization ahead of 2027 rules

The UK Financial Conduct Authority opened applications Wednesday for crypto businesses seeking authorization under rules scheduled to take effect on Oct. 25, 2027. Firms that intend to continue operating in the UK must apply by Feb. 28, 2027.

The FCA expects to decide applications submitted during the application period before the new regime begins. Existing registrations under the UK’s money laundering regulations will not transfer to the FCA’s authorization system.

The framework expands the FCA’s oversight beyond anti-money laundering and financial promotion requirements. The regulator finalized the rules in June. They cover stablecoin issuance, crypto trading platforms and measures addressing market abuse.

“The UK’s new crypto regime will give consumers greater protections and firms a clear framework to operate in,” said Dominic Cashman, the FCA’s director of authorization.

Emma Banymandhub, CEO of payments industry trade body The Payments Association, welcomed the opening of applications and urged firms registered under the money laundering regulations to treat the process as a new authorization application.

“MLR registration will not carry over, and firms should be realistic about the standards they will need to meet,” Banymandhub said.

Banymandhub added that the process would affect smaller and growing businesses, which will need to meet the authorization requirements separately even if they already hold a money laundering registration.