FCA Warns UK Crypto Firms: Registration Is No Longer Enough

The UK Financial Conduct Authority (FCA) has released final guidance on September 16 outlining which crypto activities require authorization under the country's new regulatory framework. The new regime will take effect on October 25, 2027, and firms seeking transitional arrangements must apply by February 28, 2027.

The FCA said that existing registrations and permissions will not automatically carry over to the new framework, and companies registered under the UK's anti-money laundering framework will also need to go through the new authorization process. The regulator warned that firms should not rely on how they describe their own business but instead look at what functions a company actually performs.

The guidance covers a wide range of activities, including issuing stablecoins, running crypto trading platforms, dealing in digital assets, arranging transactions, safeguarding cryptoassets, and offering staking services. Overseas firms, including US companies serving UK customers or operating within the UK market, may also need FCA authorization.

David Geale, the FCA's executive director of consumers, payments and competition, said, 'Getting ready for regulation starts with understanding how the regime applies to your business.'