The Financial Conduct Authority (FCA) has begun accepting applications for firms seeking authorisation under the UK’s new cryptoasset regulatory regime, set to take full effect on 25 October 2027. Companies looking to operate legally in the UK must apply by 28 February 2027. This regime marks the first time crypto businesses will face full FCA regulation, requiring them to meet stringent standards in areas such as consumer protection, asset safeguarding, market integrity, and financial resilience.
According to data from Pinsent Masons, the FCA has shown a growing willingness to engage with the crypto sector, as evidenced by a significant increase in approvals for cryptoasset registration applications. In the year to 30 June, 13 of 22 applications were approved, up from 7 of 32 in the previous year. This suggests regulators are becoming more open to working with the industry as it moves toward full regulation.
Anthony Harrison, a financial regulatory expert at Pinsent Masons, emphasized that firms must start preparing now by reviewing their governance, compliance frameworks, and key personnel capabilities. He highlighted the importance of robust controls in anti-money laundering (AML) and customer due diligence, noting that failures in these areas have led to substantial enforcement penalties in the UK and internationally.
Harrison also pointed out that the FCA’s collaboration with crypto firms has increased, with the regulator offering guidance on applications and demonstrating a greater willingness to engage. Once the new regime takes effect, firms will face heightened scrutiny of their customer-facing activities, including financial promotions, risk warnings, and staff qualifications.