Crypto firms in the UK are set to gain access to the FCA’s crypto authorisation gateway on 30th September, giving them time to apply for authorisation ahead of the upcoming cryptoasset regulatory regime.
The step comes after the FCA published its final perimeter guidance on 16th September outlining the cryptoasset activities that would require authorisation.
The firms have been provided with additional clarity for the upcoming regime that is set to come into force on 25th October 2027.
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What Activities Are Covered Under the New Framework?
The new regime covers different crypto activities that fall under the FCA’s regulatory perimeter.
As per the FCA’s guidance, these activities include the issuance of qualifying stablecoins, operating cryptoasset trading platforms, dealing and arranging digital asset transactions, safeguarding cryptoassets, and arranging cryptoasset staking.
The guideline is created to help firms identify whether their activities come under the newly-regulated regime.
When Will Crypto Authorisation Applications Open?
Authorisation will be accepted starting from 30th September 2026, while the application window will be open until 28th February 2027.
Firms intending to make use of the respective saving or transitional provisions should apply within the above-mentioned time period. The FCA has suggested that firms should initiate their application process as soon as possible and not wait until the last date.
Furthermore, the FCA has offered pre-application support to firms preparing their applications.
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What Will Be the Position of Existing Companies ?
One important feature of the new regime is that existing registrations do not automatically imply FCA authorisation.
The FCA clearly mentions that those firms which are already registered under the MLRs will need FSMA authorisation if they engage in activities covered under the new regime. Thus, MLR registration and FSMA authorisation will continue to be different regulatory requirements.
This means that existing crypto companies need to assess the activities they carry out and be ready for the new requirements before the new regime comes into effect.
Why Is the September 30 Gateway Important?
The opening of the gateway on September 30 gives cryptocurrency firms an opportunity to begin the authorisation process before the fully implemented regulations are enforced.
In the designated period, firms will be able to engage in specified activities under the saving and transitional provisions, provided they meet the requirements, while their applications are being assessed. Those who fail to apply during the specified period will not be able to utilize such provisions.
According to the Financial Conduct Authority, there are some key topics that should be addressed by firms when preparing for the new regulation, including market conduct, customer treatment, senior leadership, governance, and systems and controls.
The FCA has also stated: “Getting ready for regulation starts with understanding how the regime applies to your business.”
What Comes Next for UK Digital Currency Regulation?
The September guidance is an incremental step within the UK’s overall regulatory system for digital assets , but it has been made clear by the FCA that more work still needs to be done.
The FCA plans to launch a consultation in October about targeted changes in areas like UK qualifying stablecoins, proprietary trading and market-making, certain technology providers, decentralised protocols, safeguarding arrangements involving central securities depositaries, and financial promotions.
Crypto businesses doing business in the UK will need to focus on making their submissions before the 28th February 2027 application deadline.
The wider FCA regime is due to come into effect on October 25, 2027, marking a major shift in the regulation of cryptoasset activities in the UK.
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