UK financial regulators have set out a timeline for a new crypto licensing regime, requiring firms to obtain full authorization before the framework takes effect.
Crypto asset service providers (CASPs) will be able to apply for authorization under the new regime starting in autumn 2026, the Financial Conduct Authority (FCA) said on Thursday.
“We expect the application window to open in September 2026,” the FCA said, adding that the timeline will be confirmed in due course.
The FCA will operate a licensing “gateway” that provides a limited period for applications to be reviewed before the regime formally comes into force on Oct. 25, 2027.
Existing registrations won’t automatically carry over
Under the proposed framework, all companies offering regulated crypto asset services in the UK will be required to obtain authorization under the Financial Services and Markets Act (FSMA).
This requirement will also apply to crypto firms currently registered under the UK’s Money Laundering Regulations (MLRs) and existing payment-related regulatory frameworks, the FCA said, adding:
“In particular, firms that are registered with us under the MLRs should note that there will be no automatic conversion and that they will need to secure authorisation by us under FSMA prior to the commencement of the new regime.”
Firms already authorized by the FCA under the Financial Services and Markets Act (FSMA) for other regulated activities will be required to vary their existing permissions before the new crypto regime comes into effect.
The regulator also said that crypto firms currently relying on another authorized company to approve their financial promotions will need to secure direct FCA authorization in order to continue marketing products in the UK.
Firms that miss the application window may face limits
Under the framework, crypto firms must apply within a designated application window of at least 28 days, which will close no later than 28 days before the new regime begins.
Applications submitted during this period are expected to be processed before the regime takes effect. Draft legislation includes a “saving provision” that would allow firms to continue operating while their applications are under review.
Companies that fail to apply within the window or are not authorized when the regime launches will be subject to transitional arrangements. These would permit the continuation of existing products but restrict the rollout of new services. While late applications will still be accepted, the FCA warned that they could face extended review timelines.
