FCA Defines Which Crypto Firms Need Authorization From 2027

The Financial Conduct Authority has published final guidance showing which crypto businesses will need authorization when the new UK crypto regulatory regime starts on October 25, 2027. Applications open September 30, 2026.

Good to Know

• Crypto firms can apply for FCA authorization from September 30, 2026 until February 28, 2027.
• Stablecoin issuance, crypto custody, trading platforms, dealing, arranging transactions and staking can fall inside the new regulatory perimeter.
• Existing FCA registrations and permissions do not automatically cover the new crypto activities.

FCA Defines Which Crypto Activities Need Approval

The FCA guidance focuses on what a business actually does rather than how it describes its service.

Issuing qualifying stablecoins, safeguarding cryptoassets, operating a crypto trading platform, dealing as principal or agent and arranging crypto transactions can all require authorization. Arranging cryptoasset staking also falls within the new regulated activities, subject to specific exclusions.

That means one crypto company may need several permissions covering different parts of its business.

Firms already authorized under the Financial Services and Markets Act may need a variation of permission. Companies registered under UK anti money laundering rules must also apply because MLR registration covers a different regulatory purpose and will not convert into authorization under the new system.

David Geale, FCA executive director of consumers, payments and competition, said:

“Getting ready for regulation starts with understanding how the regime applies to your business.

“This guidance gives firms the clarity they’ve asked for so they can prepare with confidence.”

The FCA will offer webinars and pre application support to companies preparing submissions.

Crypto Application Window Opens September 30

The application period will run from September 30, 2026 to February 28, 2027, giving the FCA time to process applications before the rules take effect on October 25, 2027.

Eligible existing businesses that apply during the window can continue operating while the FCA determines their applications under savings provisions set out in the Cryptoasset Regulations.

Parliament approved the Financial Services and Markets Act 2000 Cryptoassets Regulations 2026 on February 4. The legislation brings several crypto activities into the normal FSMA authorization framework for the first time.

The FCA then published its main rule package on June 30. It covers areas including qualifying stablecoins, custody, capital requirements, operational standards, disclosures and crypto market abuse.

Overseas businesses also need to check their position. The FCA specifically identifies firms outside the UK that provide crypto services to UK consumers among businesses affected by the new perimeter. Foreign authorization does not remove the need to assess whether UK FCA permission is required.

Further changes remain possible. The FCA plans another consultation on perimeter guidance in late 2026 after expected government amendments to the underlying regulations, with updated guidance targeted for early 2027.

FAQ

When does the UK crypto regulatory regime begin?

The new FCA crypto regime starts on October 25, 2027.

When can crypto firms apply for FCA authorization?

The application window opens September 30, 2026 and runs until February 28, 2027.

Which crypto activities may require FCA authorization?

The list includes stablecoin issuance, crypto custody, trading platforms, dealing, arranging transactions and cryptoasset staking. Specific exclusions can apply depending on the service.

Does an existing FCA crypto registration automatically transfer?

No. Existing MLR registrations and current FSMA permissions do not automatically provide authorization for the new regulated crypto activities.

Do overseas crypto firms need FCA authorization?

Potentially. Overseas firms providing regulated crypto services in or to the UK must assess whether their activities fall within the FCA perimeter.