FCA opens crypto authorization applications ahead of 2027 rules

The UK's Financial Conduct Authority (FCA) has opened its authorization process for crypto firms ahead of rules taking effect October 25, 2027. Firms seeking to continue operating in the UK must apply by February 28, 2027, the FCA said. The regime, published in June earlier this year, will bring a broader range of digital asset activities under FCA oversight. It covers firms facilitating trading, transactions, staking and digital asset custody. It also introduces requirements for cryptoasset admissions and disclosures, market abuse, prudential standards and consumer protection. The FCA said applicants must demonstrate that they meet requirements for consumer protection, customer-asset safeguarding, market integrity and financial resilience. The FCA said approval is not guaranteed. Registration under the Money Laundering Regulations will not automatically become FCA authorization. Emma Banymandhub, CEO of The Payments Association, said opening applications moves policy into practical delivery. Banymandhub said association members have called for proportionate regulation that protects consumers without unnecessarily constraining innovation and growth. Banymandhub urged firms, including those already registered under the Money Laundering Regulations, to treat the process as a fresh authorization exercise and be realistic about its standards. Banymandhub also stressed proportionate implementation for smaller and scaling firms. Banymandhub said a well-run, proportionate process would help maintain the UK's competitiveness and build a trusted digital asset market. The FCA said firms applying during the application window can continue providing specified cryptoasset services, including taking on new business, while their applications are assessed, provided they meet the relevant transitional conditions.