The FCA has opened its authorisation gateway for the UK’s new cryptoasset regime.
Firms can now apply for authorisation, or to vary their existing permissions, through the regulator’s Connect system. The application period runs until 28 February 2027, ahead of the regime coming into force on 25 October 2027.
Any firm wanting to carry out the new regulated cryptoasset activities, which include issuing stablecoins, operating trading platforms, safeguarding cryptoassets and arranging staking, will need to be authorised under the Financial Services and Markets Act 2000.
This includes firms currently registered with the FCA under the Money Laundering Regulations. The regulator said there will be no automatic conversion, and these firms will need to secure authorisation. Firms already authorised for other regulated activities will need to vary their permissions.
The FCA said it expects to decide on applications submitted within the window before the regime begins. If a decision is still pending at that point, firms will be able to continue operating until their application is determined.
Firms that apply after the window closes will enter the transitional provision if they are not authorised by the start date. They will only be able to carry out activity needed to fulfil existing contracts and cannot take on new UK customers. The FCA said it will not speed up late applications.
Firms that do not apply at all must wind down their UK cryptoasset business before the regime starts, or risk carrying on unauthorised business.
Firms can still request an optional, free pre-application meeting. However, the FCA said it will reject requests that are not backed by meaningful supporting information about the firm’s business model and the activities it intends to apply for.
