UK Crypto Firms Must Meet New Regulations or Face Closure

The UK Financial Conduct Authority (FCA) has opened applications for crypto firms seeking authorisation under the country's new cryptoasset regulatory regime. The move marks the start of the transition towards bringing crypto businesses operating in the United Kingdom under full FCA regulation.

Firms will be assessed against requirements covering consumer protection, safeguarding of customer assets, market integrity and financial resilience. Authorisation will not be automatic, and businesses that fail to meet the FCA's standards will not be permitted to continue providing regulated cryptoasset services in the UK.

Existing firms intending to continue operating in the UK must apply by 28 February 2027, ahead of the new regime taking effect on 25 October 2027. Firms that apply during the transition period can continue providing cryptoasset services while their applications are being assessed if a decision has not yet been made.