UK FCA Announces New Licensing Framework for Crypto Firms Starting in 2026
- The Financial Conduct Authority (FCA) will open a licensing gateway for crypto firms in September 2026.
- A new regulatory framework will take effect in October 2027, requiring all crypto businesses to register under the FSMA.
- Existing registrations under anti-money laundering regulations will not automatically transfer to the new system.
- Firms that do not gain approval by the deadline can only provide existing services without launching new ones.
- The application review period is set for a minimum of 28 days before the new regulations are enforced.
The FCA’s announcement marks a significant shift from previous proposals, such as a ban on credit card purchases for digital assets. The upcoming licensing requirements aim to enhance governance and consumer protection in the UK crypto market.
As of September, firms must apply for licenses under strict timelines, with a focus on compliance by October, ensuring that only authorized entities operate in the evolving landscape of Legal cryptocurrency activities.(Source)
