UK regulator opens crypto authorization applications ahead of 2027 rules

The UK's Financial Conduct Authority (FCA) has opened applications for crypto firms to become authorized under a regulatory regime due to take effect in October 2027. The FCA said in a Wednesday announcement that applications would give the industry clarity and legitimacy. FCA director of authorisation Dominic Cashman said the new regime would give consumers greater protections and firms a clear framework. Applicants must demonstrate that they meet requirements covering consumer protection, customer-asset safeguarding, market integrity and financial resilience. The FCA finalized its cryptoasset framework in June. The UK is drafting a broader crypto bill. Last year, the UK recognized bitcoin and other digital assets as property. That reform followed a 2023 Law Commission recommendation that argued digital assets did not fit neatly into existing legal categories. The UK currently trails the European Union and the United States on digital asset regulation. The European Union's Markets in Crypto-Assets regulation has applied to service providers since December 30, 2024. The United States enacted the GENIUS Act under President Donald Trump in July 2025, establishing a federal framework for dollar-backed tokens. Lawmakers blocked the Clarity Act last month. However, United States regulators including the Securities and Exchange Commission have continued rulemaking.