UK FCA to Open Crypto Licensing Applications in September 2026

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The FCA is requiring crypto businesses in the UK to obtain authorization before the new crypto regulations come into effect in October 2027, to avoid restrictions on new business activities during a transitional period. 

Crypto asset service providers will be able to apply to enter the UK under the crypto licensing regime starting this fall, the Financial Conduct Authority said this Thursday.

“We expect the application period will open in September 2026,” the FCA noted, adding that the timeline will be confirmed in due course. Existing registration will not auto-update for FCA gateway registration. However, according to the plan, all firms that provide regulated crypto services will have to be authorized under the Financial Services and Markets Act in the UK.

The authorization requirement includes crypto entities currently registered under existing Money Laundering Regulations and payment-related frameworks, the FCA noted, 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.”

Companies that are already FCA-authorized under the Financial Services and Markets Act for providing other regulated activities will need to “have varied their existing permissions before the commencement of the new regime.” The supervisor has also stated that if crypto firms are presently relying on an authorized firm for the approval of financial promotion, they will also be required to get direct authorization from the FCA for marketing their product within the jurisdiction of the UK.

Companies that do not meet the application timeframe will find their operations restricted. However, the FCA gives these companies a time window in which is at least 28 days, but not later than 28 days before the new regime comes into practice.

The regulation system

The applications made during this time are expected to be decided before this new system is introduced. The proposed act contains a “saving provision,” enabling companies to carry on their operations during the time their applications are being processed. Those who miss or are not authorized as the regime comes into effect will be placed under the transitional provisions, allowing existing products but curbing new ones. One could still apply if late, although the FCA warned that evaluation time may be longer.

This structured approach aims to bring order to the UK’s growing crypto sector while protecting consumers. For businesses already operating in the space, the message is clear: start preparing now. The September 2026 window gives firms over a year to gather documents, review compliance, and submit applications. Those who act early stand to gain full access to the market without hitches.

This is still indicative of the UK’s dedication to having a regulated environment that accommodates cryptocurrencies. More than being required to merely qualify under money laundering regulations for previous structures, more rigorous evaluation under financial services regulations is now required.

Conclusion

Meanwhile, for new market entrants looking to break into the UK market, the timeline provides a clear roadmap. They can simply chart a strategy for the September launch in 2026 and ensure compliance with every criterion starting from day one. Already-established operators, on the other hand, simply have to renew permits to avoid being pipped to the post by a host of ‘new and novel offerings’ such as the latest trading functionality.

Industry watchers see this as a boost for London’s status as a crypto hub. Compliant firms could attract more investment. Businesses should monitor FCA updates closely, as exact dates and forms will follow. Engaging legal experts early could smooth the process. For those on the fence, the transitional rules provide a safety net, but delays carry real costs in a fast-moving market.

This development comes amid global shifts as the UK joins others in tightening crypto oversight, balancing growth with stability. As September 2026 nears, proactive steps will separate thriving firms from those left behind.

Glossary

CASPs (Crypto Asset Service Providers): Businesses offering services like trading, custody, or exchanges for digital assets in the UK.

FCA (Financial Conduct Authority): The UK’s main financial regulator overseeing markets, firms, and consumer protection.

FSMA (Financial Services and Markets Act): Core UK law governing authorization for financial activities, now extending to crypto services.

MLRs (Money Laundering Regulations): Existing UK rules firms use for anti-money laundering checks; won’t auto-convert to full crypto licensing.

Saving Provision: Draft law clause allowing businesses to operate during application reviews if submitted on time.

FAQs

1. When does the UK crypto licensing application window open?
   The FCA expects it to start in September 2026, with exact dates confirmed soon.

2. Will existing FCA registrations automatically update for the new regime?
   No, firms registered under Money Laundering Regulations must apply for fresh authorization under the Financial Services and Markets Act. No automatic conversions.

3. What happens if a company misses the application window?
   They can continue existing products under transitional rules but face restrictions on new services. Late applications may take longer to process.

4. How long is the official application window?
   At least 28 days, closing no later than 28 days before the regime starts on October 25, 2027.

5. Do crypto firms relying on others for marketing approvals need direct FCA permission?
   Yes, firms must get their own FCA authorization to approve and run financial promotions in the UK.

6. What support exists for businesses during the application?
   A “saving provision” lets approved applicants keep operating while decisions are made, but preparation is key to avoiding delays.

References

FCA
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