The UK’s crypto regime has moved into the application phase. A firm’s current status and the timing of its filing will shape how it can keep serving customers.
The UK’s Financial Conduct Authority began accepting applications for its new crypto authorisation regime on September 30. In its announcement, the FCA said firms intending to continue operating in the UK should apply by February 28, 2027. The regime itself takes effect on October 25, 2027.
The timetable for crypto regulation matters beyond the filing deadline. Applying within the designated window affects how an existing firm can continue serving customers if the regulator has not reached a decision when the new rules begin. Submitting an application is not the same as securing approval.
Existing registration is not a passport into the new regime
The FCA will assess firms against standards covering consumer protection, safeguarding customer assets, market integrity and financial resilience. In the written announcement, its director of authorisation, Dominic Cashman, said the regime was intended to give consumers greater protection and firms a clearer framework in which to operate.
Crypto businesses already registered under the anti-money-laundering framework, the Money Laundering Regulations, still need to apply. The FCA’s gateway guidance makes clear that their registration will not automatically convert into authorisation under the Financial Services and Markets Act 2000, or FSMA.
“Authorisation is not automatic.”
FCA announcement, September 30, 2026
Firms already authorised under FSMA for other activities will need to vary their permissions to add the relevant crypto activities. Applications go through the FCA’s Connect system. A platform describing itself as “FCA registered” therefore has not necessarily secured permission for every service it plans to offer under the new rules.
For customers reading crypto exchange reviews, a regulator’s name or a register entry tells only part of the story. The useful distinction is which service a permission covers, and whether the platform is referring to an existing registration, an application in progress or authorisation already granted.
Late applications could restrict new UK business
The FCA expects to decide applications filed during the window before October 25, 2027. If a decision is still pending at that point, a saving provision allows existing firms that applied on time to continue providing services, including taking on new business, while their applications are determined. Relevant notification requirements also apply.
February 28 is a transition threshold, not the last possible filing date: Applications can still be submitted after the window closes. But a late applicant that lacks the required permission when the regime begins cannot enter new contracts with either new or existing UK customers. Its permitted activities are limited to performing pre-existing contracts.
A firm that does not apply before commencement must wind down its UK crypto business before the regime starts. The FCA also says it will not speed up an assessment simply to make up for a late filing.
The regulator’s English-language short video from August 18, 2026 explains how application timing affects new business. It was recorded before the gateway opened; the September 30 launch it describes as expected has since taken place.
The next meaningful outcome will be which firms secure permission for which activities, rather than how many submit a form. Opening the gateway does not amount to blanket approval for platforms or make crypto investments risk-free.
