The FCA will open crypto authorization on Sept. 30, 2026, with full approval required before Oct. 25, 2027, adding stricter compliance burdens that may weigh especially on smaller firms serving UK customers.
The United Kingdom is rolling out a stricter crypto regulatory framework that brings the sector closer to traditional financial standards and requires exchanges to obtain full authorization from the Financial Conduct Authority (FCA), the country’s financial regulator. Under the Financial Services and Markets Act (Cryptoassets) Regulations 2026, applications open on Sept. 30, 2026 and close on Feb. 28, 2027, with full enforcement scheduled for Oct. 25, 2027. Firms already on the anti-money laundering register can continue operating during the transition while their applications are reviewed, but businesses that do not apply will be unable to legally offer services once the regime takes effect. The framework is intended to strengthen investor protection through measures including clearer risk warnings, a 24-hour cooling-off period, access to the Financial Ombudsman Service and client money safeguards. Katherine Kirkpatrick Bos said the tougher compliance requirements could be especially difficult for smaller firms, raising questions about whether some can realistically meet the burden while continuing to serve UK customers.