FCA Opens Crypto Authorization Window Until Feb 28, 2027
In this article
The UK Financial Conduct Authority (FCA) opened applications on Wednesday, September 30, 2026, for crypto businesses seeking authorization under a regulatory regime set to take effect on October 25, 2027. Firms planning to continue operating in the UK should apply by the end of February 2027, according to Cointelegraph.
What the FCA has said
Dominic Cashman, the FCA’s director of authorization, said: “The UK’s new crypto regime will give consumers greater protections and firms a clear framework to operate in.”
Emma Banymandhub, CEO of The Payments Association, welcomed the opening but cautioned that MLR-registered firms must treat the process as a fresh authorization. “MLR registration will not carry over, and firms should be realistic about the standards they will need to meet,” she said. Banymandhub added that implementation would be particularly important for smaller and growing businesses.
What the new regime changes
The framework expands the FCA’s oversight beyond anti-money laundering and financial promotion requirements. It introduces standards covering consumer protection, custody of client assets, market integrity, and financial resilience. Once the regime is live, crypto firms operating in the UK will come under full FCA regulation for the first time, according to PANews.
Why it matters
For crypto businesses already registered under the MLRs, the opening of applications signals that a separate, more demanding authorization process now lies ahead. The FCA’s decision not to convert existing registrations means firms cannot rely on their current status to continue operating legally after October 25, 2027. The shift affects not only large exchanges but also smaller and growing businesses, which Banymandhub said may face particular implementation challenges. The new standards on custody and financial resilience could reshape how crypto services are offered to UK consumers.
What to watch
The February 28, 2027, application deadline is the next key date. The FCA expects to decide applications submitted during the window before the regime takes effect. How many firms apply — and how many meet the standards — will indicate the practical impact on the UK crypto market.
Frequently Asked Questions
When does the new UK crypto regime take effect?
The regime is due to take effect on October 25, 2027.
Do existing MLR registrations automatically convert to FCA authorization?
No, existing money laundering registrations will not convert into FCA authorization, according to Cointelegraph.
What standards will firms need to meet?
The framework covers consumer protection, custody of client assets, market integrity, and financial resilience, as reported by PANews.
Can firms apply after February 28, 2027?
The FCA expects to decide applications submitted during the window before the regime takes effect, but firms intending to continue operating should apply by the end of February 2027.
Sources: Cointelegraph, PANews
