UK FCA Announces Crypto Licensing Window to Open in September 2026

TLDR

• The UK FCA will begin accepting applications for crypto licensing in September 2026.
• Crypto firms must be fully authorized under the Financial Services and Markets Act before the new regime starts.
• Companies registered under existing Money Laundering Regulations will need to reapply for authorization.
• Firms that miss the application deadline may face restrictions on offering new products and services.
• A “saving provision” will allow businesses to operate while their applications are under review.

The UK’s Financial Conduct Authority (FCA) has announced that crypto asset service providers (CASPs) will be able to apply for authorization under the new crypto licensing regime starting in September 2026. This move comes as part of the UK’s efforts to regulate and monitor the growing cryptocurrency industry. The FCA aims to establish clear guidelines for crypto firms to operate legally in the country.

UK FCA to Open Crypto Licensing in 2026

Starting in September 2026, crypto firms can begin submitting applications to the FCA for full authorization under the new licensing framework. The FCA confirmed the timeline, stating, “We expect the application period will open in September 2026.” The application period will offer a limited window before the regime becomes active, which is expected to occur on October 25, 2027.

Firms that wish to provide regulated crypto asset services in the UK will need to apply for authorization under the Financial Services and Markets Act (FSMA). The FCA also made it clear that there will be no automatic transition for firms already registered under the existing Money Laundering Regulations (MLRs). These firms will need to reapply for authorization under FSMA before the new regime starts.

Existing Registrations Won’t Convert Automatically

The FCA stressed that companies currently registered under the MLRs will not have their status automatically converted to the new regime. “In particular, firms that are registered with us under the MLRs should note that there will be no automatic conversion and that they will need to secure authorization by us under FSMA prior to the commencement of the new regime,” the FCA stated.

Crypto companies that already hold FCA authorization for other regulated activities must vary their permissions before the new regime is implemented. Those firms also need to ensure their authorization includes crypto asset services, as this will not automatically be covered under their existing permissions.

Late Applications May Face Restrictions

The FCA has set clear guidelines for companies that wish to apply for authorization under the new regime. Firms will have at least 28 days to submit their applications before the new regime starts. Companies that miss the application deadline may face restrictions, including the inability to offer new products or services.

The FCA has introduced a “saving provision,” which will allow businesses to continue operating while their applications are being processed. However, firms that fail to meet the application deadline will be subject to transitional rules, which could limit their ability to expand operations or introduce new offerings.

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