- The FCA will open a crypto licensing application in September 2026.
- The new crypto regime commences in October 2027.
- Firms face increased compliance costs and time pressure.
The UK Financial Conduct Authority plans to open its crypto licensing gateway in September 2026, preceding the new regulatory regime’s start in October 2027.
This move affects crypto service providers operating in the UK, highlighting the need for regulatory authorization in advance.
UK FCA Announces Crypto Licensing Gateway for 2026
The UK’s Financial Conduct Authority (FCA) has announced plans to open a crypto licensing gateway in September 2026 as part of its new regulatory regime. This move anticipates the new rules, expected to take effect in October 2027.
The FCA, working with HM Treasury, leverages its powers under the Treasury’s draft Statutory Instrument to manage the application period. Services “in or to the UK” will need authorization under the Financial Services and Markets Act (FSMA).
The introduction of the licensing gateway is poised to have immediate effects on existing and prospective cryptoasset service providers operating in or into the UK. Compliance and authorization costs are expected to rise significantly.
Firms offering cryptoasset services must now obtain new FSMA authorizations. This signals an increase in operational and legal expenditures, impacting those involved in various cryptoasset activities from exchanges to custodians.
“The timings set out by the FCA will create significant time pressure on firms seeking UK authorisation.” – Latham & Watkins, Regulatory Lawyers
The impending regulatory shift emphasizes the need for crypto firms to prepare early for licensing applications. Experts forecast increased time pressure on firms ahead of the September 2026 deadline set by the FCA.
Potential outcomes include realigning business strategies to meet new regulatory standards while managing financial and legal costs. Past precedents, such as the MLR registration regime, may guide how firms approach the FSMA authorization process.
