UK regulator sets February 2027 deadline in crypto framework

The UK Financial Conduct Authority has finalized a broad crypto regulatory framework requiring firms that want to operate in the country or serve UK customers to apply for authorization between September 30, 2026 and February 28, 2027, with mandatory authorization taking effect on October 25, 2027. The regime covers crypto trading platforms, custodians, stablecoin issuers, lending and borrowing providers, staking firms and some decentralized finance firms where there is an identifiable controlling entity, marking a major expansion of the regulator’s remit after legislation passed in February 2026 brought cryptoassets within FCA oversight. The new guidance makes clear that firms seeking to carry out regulated cryptoasset activities will need authorization under the Financial Services and Markets Act 2000, or a variation of permission if they are already authorized for other business. Existing anti-money-laundering registration under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 will not automatically convert into that authorization. The FCA plans pre-application support meetings from July 2026 through its PASS service, but says firms must provide meaningful information and that such meetings do not guarantee approval. Timing could shape whether firms preserve full UK market access. The FCA says applications submitted during the formal window are expected to be decided before the regime begins, and a statutory saving provision may allow firms to continue providing services if a decision is still pending. Firms that apply late may instead fall into a transitional provision that allows activity only to service pre-existing contracts and bars new contracts with existing or new UK customers. Firms that do not apply will need to wind down UK cryptoasset business before commencement. The package also introduces prudential rules, annual stress tests and market abuse controls, while the FCA says authorized firms will face ongoing supervision and enforcement under the same framework used for other regulated businesses.