UK FCA to Open Crypto Business Authorization Applications on September 30, Overseas Retail Service Providers Also Required to Hold Licenses

September 16: The UK Financial Conduct Authority (FCA) has published guidance on the regulatory perimeter for cryptoasset businesses, clarifying the authorization requirements for activities including stablecoin issuance, trading platform operation, cryptoasset trading and matching, custody, and staking arrangements. The application window will open on September 30, 2026, and close on February 28, 2027, with the new regulatory regime formally taking effect on October 25, 2027.

The regulatory scope covers not only UK-based firms. Overseas companies that directly provide trading, matching, or cryptoasset custody services to UK retail clients will also be deemed to be carrying on business in the UK and cannot rely on the usual overseas persons exemption. Overseas firms that conduct purely institutional business, or that reach local consumers only through UK-licensed dealers and trading platforms, are generally outside the scope of these requirements.

Firms that submit materials within the application window can obtain statutory transitional arrangements and continue operating while the FCA reviews their applications. Firms that miss the February 28 deadline may still apply, but will not receive that protection; if they remain unauthorized as of October 2027, they may only be able to perform existing contracts and may not take on new clients or conduct new business. Before the formal regime takes effect, existing anti-money laundering registration and financial promotion rules will continue to apply, and the FCA will not grant operating licenses under the new regime in advance.