UK crypto firms will have five months, from September 30, 2026, to February 28, 2027, to apply for approval from the Financial Conduct Authority (FCA) before a new crypto regulatory regime is expected to begin in October 2027.
The FCA will accept applications during this period. Firms that are already registered under anti-money-laundering rules will still need to apply separately if they want to carry out crypto activities covered by the new rules.
Companies that apply on time may be allowed to continue certain services while the FCA reviews their applications, as long as they meet the required conditions. Firms that miss the February 28 deadline may have to stop covered activities until they receive approval.
The FCA says its current crypto oversight mainly focuses on anti-money-laundering registration and financial promotions. The new framework will bring more crypto activities under the wider financial-services rules.
Existing registrations will not automatically become full FCA permission. Crypto businesses such as trading platforms, custodians, stablecoin issuers and some staking providers will need to apply if their activities fall under the new framework.
The FCA is expected to begin the new regime on October 25, 2027. It also opened a pre-application support service in July to help firms prepare before submitting their applications.
The new rules will cover areas such as financial requirements, company governance, customer protection and specific standards for different crypto services. The FCA’s policy work also includes stablecoin issuance, crypto custody, asset disclosures and controls designed to prevent market abuse.
Zumo founder and CEO Nick Jones said the clearer rules could make the UK market more attractive to traditional financial companies. He argued that uncertainty around regulation and concerns about business partners had previously made some institutions cautious about entering the crypto sector.
Traditional financial platforms are already showing more interest in crypto-related products. Hargreaves Lansdown, for example, began offering nine Bitcoin and Ether exchange-traded notes to eligible clients on September 3.
These products give investors exposure to the price of Bitcoin and Ether without requiring them to directly own the cryptocurrencies or manage private keys. Access is limited to clients using the platform’s Advanced Investing service and includes additional risk checks.
The FCA has also proposed allowing certain authorised funds to hold up to 10% of their assets in crypto exchange-traded notes. That proposal is separate from the rules governing retail access to these products.
Overseas crypto companies serving UK customers will also need to consider whether they should apply for FCA approval for activities covered by the new regime.
Binance, for example, was reported in August to be planning an application for an FCA licence as it looks at returning to the UK market. However, the company had not publicly confirmed that it had filed an application.
The UK’s new framework could push more crypto businesses toward regulated local operations and partnerships. For firms planning to remain active in the UK, the five-month application window will be an important step toward meeting the new requirements.
