FCA Sets 2026 Deadline for UK Crypto License Applications

The UK's Financial Conduct Authority (FCA) has outlined the timeline and requirements for crypto asset service providers seeking new licenses and full authorization.

Crypto firms can apply for licenses starting September 2026.
The new regulatory regime is expected to begin on October 25, 2027.
All firms offering regulated crypto services must obtain authorization under the Financial Services and Markets Act (FSMA).
This change shifts the focus from anti-money laundering registrations to full FSMA authorization.
Existing registered entities must reapply to continue operations under the new rules.
Current financial promotion arrangements approved by third parties will no longer suffice; direct FCA authorization is required.
The application window for authorization will last at least 28 days, closing before the new regime takes effect.
A "saving provision" allows firms to operate while applications are assessed.
Late applications may face extended review times, with transitional rules limiting new product launches.

Additionally, stablecoins remain a priority for the FCA in their regulatory efforts.