UK Crypto Firms Face Tight Deadline for FSMA Authorization
The UK Financial Conduct Authority (FCA) has opened a five-month application window for crypto businesses to seek authorization under the country's new Financial Services and Markets Act (FSMA) regime. The deadline for applications is February 28, 2027, before the rules take effect on October 25, 2027.
Firms must demonstrate that their controls, governance, and customer protections are ready for a broader regulatory system. This may involve conducting a gap analysis to identify areas of non-compliance or redesigning systems to meet FCA expectations.
The new regime will cover activities regulated by the FCA as cryptoasset services, including stablecoin issuance, trading platforms, and market abuse. Existing firms must secure fresh authorization under the FSMA framework, which means registration under the Money Laundering Regulations does not automatically carry over.