FCA indicates timetable for crypto licence applications

Firms can start applying to enter the UK’s cryptoasset licensing regime from this autumn, according to an update from the Financial Conduct Authority. The FCA’s application gateway will provide a limited window of opportunity for firms to be processed before the new regime goes live next year (expected to be 25 October 2027).

Introducing the cryptoasset gateway

Under the incoming regime, firms conducting regulated cryptoasset activities will need to be authorised by the FCA and subject to FCA supervision and enforcement. Crypto firms, including those registered with the FCA under money laundering regulations, will need to apply for a licence. Firms that already have a licence to carry on traditional financial services will need to vary their existing permissions if they want to carry on crypto activities as well.

Firms will be able to submit applications before the regime starts to apply. The FCA has now confirmed that it expects to open a gateway for applications in September 2026. The FCA has not yet said how long the application period will last.

Firms planning to provide regulated crypto services in the UK should start to prepare so they are ready for the gateway:

• Firms that apply during the application gateway period should have their application determined before the regime starts. This will give them assurance about the crypto services they can provide in the UK after the go-live date. Even if the FCA does not approve the application before the regime starts, firms that apply during the application gateway period will be able to continue carrying on crypto activities in the UK until the FCA determines their application, meaning that applying during the application gateway period is important to give certainty that existing crypto services can continue to be provided without disruption after October 2027.

• Firms that apply outside the application period may not be authorised in time, in which case they would enter a transitional regime while their application is determined. This transitional period allows firms to run off pre-existing contracts, but they would not be able to conduct new UK business after October 2027 until they are authorised. Firms that do not apply before the go-live date in October 2027 will not benefit from this transitional regime.

A new rulebook for cryptoassets

The Government has laid the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025 before Parliament. These regulations will bring cryptoassets within the remit of the FCA.

The FCA is developing a new cryptoasset sourcebook that will set rules for cryptoasset activities. The FCA now also says it plans to include a table setting out how other FCA rules will apply to crypto firms.

The FCA has already published several papers as it develops its crypto rulebook. More consultations are expected to follow, as well as final rules later this year.