Those that fail to secure a license by the 2027 deadline will be restricted from conducting new UK business
The UK Financial Conduct Authority (FCA) has established a definitive timeline for its new cryptocurrency licensing regime, with the application gateway scheduled to open in September 2026. Under the Financial Services and Markets Act (FSMA), all crypto-asset service providers (CASPs) must obtain full authorization before the comprehensive regulatory framework takes effect on October 25, 2027.
The FCA has clarified that firms already registered under existing anti-money laundering (AML) regulations will not receive automatic conversion; instead, they must undergo a new, more rigorous assessment process that includes scrutinizing their governance, consumer protection protocols, and market integrity standards. This “authorization gateway” is part of the UK’s effort to align its digital asset regulations with international standards like the EU’s MiCA (Markets in Crypto-Assets) framework.
The new regime introduces stricter rules for financial promotions, requiring firms to have direct FCA authorization to market their services to UK consumers. This effectively ends the previous practice where unauthorized crypto firms could rely on a third-party authorized firm to “approve” their marketing materials. Furthermore, firms will be required to implement the Senior Managers & Certification Regime (SMCR), which holds specific individuals personally accountable for the firm’s compliance and conduct.
While transitional provisions will allow firms that apply during the 2026 window to continue operating while their applications are reviewed, those that fail to secure a license by the 2027 deadline will be restricted from conducting new UK business and could face enforcement actions. The FCA’s move signals a transition toward a “VASP-style” licensing model that emphasizes operational resilience and the safeguarding of client assets, intended to position the UK as a stable, regulated hub for institutional crypto activity.
