FCA Clears Crypto Rulebook But Banks Remain in Control
The Financial Conduct Authority (FCA) has published its final guidance on which crypto businesses will need authorization under the UK's incoming regulatory regime, starting October 25, 2027. The clarity removes a major uncertainty for firms, but a separate problem remains: UK banks can still restrict customers from sending money to crypto platforms.
The FCA's guidance sets out which UK crypto firms need authorization under rules that start on October 25, 2027. These rules cover stablecoin issuance, crypto trading platforms, dealing and arranging transactions, custody, and staking. They also affect overseas firms serving UK customers and traditional financial institutions moving into crypto.
Crypto firms have two weeks before the gateway opens for applications, which will be accepted starting September 30, 2026. The transition window closes on February 28, 2027. Existing registrations will not automatically convert into authorization under the new regime, according to David Geale, the FCA's executive director of consumers, payments and competition.
The FCA also plans further consultation on perimeter changes following amendments to the underlying legislation. However, regulatory approval will not guarantee frictionless access to the UK's banking system. Nine of the 10 largest UK retail banks currently block or limit some crypto-related transactions, according to The Banker.