In a major step toward a regulated crypto market, the U.K.’s Financial Conduct Authority (FCA) launched the process for registering crypto firms on Wednesday.
Crypto firms can now apply for authorization from the FCA, which will bring them under full oversight by the regulator and require adherence to investor protection requirements — along with standards for safeguarding assets, maintaining market integrity and ensuring financial resilience.
The new regime will take effect in October 2027, and the FCA said firms that plan to seek authorization should apply by Feb. 28, 2027.
“Authorization is not automatic,” the regulator said. Firms will need to be able to demonstrate that they can meet the U.K.’s new standards before they are given permission to operate.
“This reflects the government and FCA’s determination that the U.K.’s crypto sector should be defined by integrity and trust, along with growth and innovation,” it said, adding that the new framework is intended to give the crypto sector greater clarity and legitimacy, while also enhancing investor protection.
The regulator said it expects to rule on firms’ registration applications before the new regime comes into force. In the meantime, firms that have applied for authorization can continue providing crypto services, while their applications are being assessed, the FCA said.