On September 30 local time, the United Kingdom’s Financial Conduct Authority (FCA) began accepting applications from businesses seeking authorisation under the new cryptoasset regulatory regime. The designated application period runs through February 28, 2027, and the new regime takes effect on October 25 that year.
The regime covers activities including cryptoasset brokerage, dealing, custody and staking. Businesses currently registered under anti-money laundering rules must also obtain the new authorisation; existing registration will not convert automatically. Applicants must demonstrate that they meet FCA standards for consumer protection, client-asset safeguarding, market integrity and financial resilience.
The FCA plans to decide applications filed during the designated period before the regime takes effect. However, existing firms whose applications are still under review on the commencement date may continue operating, including entering into new transactions, subject to certain conditions. February 28 is therefore the key deadline for securing this transitional treatment while an application is reviewed.
Firms may still apply after February 28 and continue operating if they obtain authorisation by October 25, when the regime begins. A firm that has not been authorised by that date may only perform work necessary to fulfil existing contracts and may not enter into new contracts with either new or existing customers. A firm that does not apply at all by the commencement date must wind down its UK business beforehand.
The FCA published final rules and guidance in June and is offering pre-application support and webinars to help firms prepare.