The UK’s Financial Conduct Authority has outlined requirements for firms seeking to undertake new regulated cryptoasset activities, with the application period expected to open in September 2026.

Firms will need authorisation under the Financial Services and Markets Act before the new regime begins in October 2027. The move is part of efforts to regulate the cryptocurrency sector and introduce consumer protections currently lacking.

FSMA Authorisation Mandatory for Crypto Firms

To support this transition, the FCA launched a public consultation to assess how its existing handbook requirements would apply to crypto firms, covering governance, operational resilience, financial crime controls, and Consumer Duty obligations .

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This includes firms currently registered under anti-money laundering or payment and electronic money regulations, which must secure FSMA authorisation as “there will be no automatic conversion.”

Firms already authorised under FSMA for other activities will need to vary their permissions, and cryptoasset firms relying on another FCA-authorised firm to approve financial promotions must obtain direct authorisation to market to UK customers.

Firms Advised Seek Independent Compliance Support

The FCA plans to hold information sessions to explain the new regime, authorisation process, and standards. A pre-application support service offers optional, free meetings to discuss business models and FCA expectations, though these “do not guarantee a successful application” and are not advice.

Firms are encouraged to seek independent legal or compliance support when preparing applications.

Firms Face Restrictions Without Timely Authorisation

Applications submitted during the designated period can expect to be determined before the regime begins. A saving provision allows firms to continue offering crypto services while applications are pending or under Upper Tribunal review.

Applications submitted outside this period may still be considered but will not receive expedited assessment, and firms not authorised before the regime starts will enter a transitional provision, maintaining existing contracts but restricted from new UK-regulated crypto activities until authorisation is granted.