UK FCA Finalizes Crypto Authorization Criteria Ahead of New Regulatory Framework
The UK Financial Conduct Authority (FCA) has finalized its crypto authorization criteria and will start accepting applications on September 30. The guidance specifies when authorization is required for various crypto-asset activities, including stablecoin issuance, operation of crypto trading platforms, broking, arranging transactions, crypto custody, and staking services.
The new regulatory framework will take effect on October 25, 2027. Existing firms must file separate applications to be transferred into the new regime. The FCA will begin accepting authorization applications on September 30, with a deadline for transitional arrangements set at February 28, 2027.
David Geale, the FCA's executive director for payments and digital finance, emphasized that preparation for regulation begins with understanding how the new framework applies to a company's business. He stated that the guidance gives firms 'the clarity they have been asking for' so they can prepare with confidence.
The UK is continuing to develop its digital-asset regulatory framework, following the passage of legislation in February and the finalization of related rules and guidance in June. The FCA is also working on tokenized assets, including seeking feedback on whether some tokenized gold products should be exempt from UK fund rules.