UK Crypto Firms Must Act by Feb 28 or Risk Losing New Business

The UK's Financial Conduct Authority (FCA) has opened its gateway for crypto applications ahead of the full regime starting October 25, 2027. Eligible existing firms applying by February 28, 2027, can keep new business running if their applications remain undecided at commencement.

The FCA emphasizes that this is a temporary protection for pending applicants and not a guarantee of authorization. If an application is still pending when the full regime begins, it will allow relevant services to continue, including new business, subject to certain conditions and a two-year ceiling.

However, late applicants who file after February 28, 2027, but are still awaiting a decision on October 25, 2027, enter the transitional provision. They can only perform newly regulated activities as necessary to fulfill contracts entered into before entering transition. New contracts with both existing UK customers and new UK customers are prohibited.

The run-off arrangements last a maximum of two years, during which firms must notify the FCA and existing contract parties. Customer notices must explain the lack of relevant authorization and any changes in asset protection, dispute resolution, or compensation arrangements.