UK Crypto Firms Face February 28 Deadline for FCA Authorization

The UK's Financial Conduct Authority (FCA) has set a deadline of February 28, 2027 for cryptocurrency firms to submit applications for authorization under the country's incoming regulatory framework. The five-month window opens on September 30, 2026 and will determine whether these firms can continue operating while their filings are being reviewed.

Firms that file on time and meet all relevant conditions may continue providing specified services during the assessment period, but those that miss the cutoff could be forced to pause regulated activities until the FCA reaches a decision. Existing anti-money-laundering registration will not automatically convert into authorization, meaning covered firms must either file new applications or vary their current FCA permissions.

The framework captures a broad swath of the industry, including trading venues, custodians, stablecoin issuers, lending services, and certain staking providers. Applicants must satisfy the regulator's threshold conditions, which include new standards for prudential management, governance, conduct, safeguarding of client assets, and operational resilience.

Hargreaves Lansdown has recently launched crypto exchange-traded notes to eligible clients, but this is not part of the new authorization process. Offshore exchanges such as Binance must decide whether to pursue UK authorization for covered activities.