UK sets final crypto rules as firms face 2027 FCA authorization deadline

The UK’s financial regulator has published its crypto regulatory framework, setting the authorization deadline for cryptocurrency firms for February 2027.

The UK's Financial Conduct Authority (FCA) has published its landmark crypto regulatory framework, marking the completion of its crypto roadmap seeking to bring digital assets under the regulator's purview. 

Significant new elements include mandatory licensing for crypto firms, capital stress-testing requirements, improved market manipulation and insider trading rules, as well as simplified capital requirement standards for stablecoin issuers, according to a Tuesday press release shared with Cointelegraph.

The licensing window for crypto companies will open from September until Feb. 28, 2027, before the regime goes live on Oct. 25, 2027.

The new framework means that crypto companies in the UK will be held to “similar standards” as other financial service providers in the country, wrote David Geale, executive director of payments and digital finance at the FCA, adding:

Cryptocurrency firms, including trading platforms, custodians, stablecoin issuers, staking companies and other intermediaries, must obtain FCA authorization to operate in the UK under the new framework. 

The framework comes nearly a month after the regulator concluded its consultation window on the guidelines for the country’s future crypto regime on June 3.

Overview of FCA crypto regime, next steps and savings provisions. Source: FCA

Crypto firms with existing authorization under the money laundering regulations will not have their licenses automatically converted and will have to obtain new authorization.

Certain companies already operating in the UK may continue specified activities for a limited period as they seek authorisation under the framework’s transitional “savings provisions.” 

The FCA said that pre-application support meetings for companies will be available starting next month.

The regulator will set out its policy statements during a webinar on July 17. It will also publish a further policy statement in September to establish how the regulatory perimeter applies to cryptoasset activities.