UK financial regulators have outlined a clear roadmap for bringing crypto companies under a full authorization regime, marking another step toward tighter oversight of the digital asset sector.
According to the Financial Conduct Authority, crypto businesses will soon face a formal application process ahead of the launch of a new regulatory framework.
Key takeaways:
- Crypto firms will be able to apply for UK authorization starting in September 2026
- The new licensing regime is scheduled to go live on October 25, 2027
- Existing registrations will not carry over automatically under the new framework
- Companies that miss the application window may face operational restrictions
The regulator confirmed that crypto asset service providers will be able to start submitting applications in the autumn of 2026. While the exact date is yet to be finalized, the FCA expects the application window to open in September 2026, giving firms just over a year to prepare before the regime officially takes effect.
Authorization Required Before October 2027 Launch
The new licensing framework is scheduled to go live on October 25, 2027. Before that date, the FCA will operate a limited “gateway” period during which applications will be reviewed and, where possible, approved in advance of the regime’s start.
Once the framework is active, any company offering regulated crypto services in the UK will be required to hold authorization under the Financial Services and Markets Act. This applies across the board, regardless of whether a firm is already operating in the market under existing registrations.
No Automatic Pass for Existing Registrations
One of the most significant changes is that current registrations will not carry over automatically. Crypto firms that are presently registered under the UK’s anti-money laundering rules or payment-related frameworks will still need to apply for full authorization under the new system.
The FCA has also clarified that companies already authorized under the Financial Services and Markets Act for other financial activities cannot rely on their existing permissions. Instead, they will need to formally update or expand those permissions to cover crypto services before the new regime begins.
In addition, crypto businesses that currently depend on third parties to approve their financial promotions will be required to obtain direct FCA authorization if they wish to continue marketing products to UK customers.
Missing the Window Comes With Limits
The application period will be tightly defined. The FCA plans to keep the window open for at least 28 days, closing no later than 28 days before the regime comes into force. Applications submitted within this timeframe are expected to be assessed before the new rules apply.
Draft legislation includes a temporary safeguard allowing firms to continue operating while their applications are under review. However, companies that fail to apply on time or do not secure authorization by the start date will face restrictions. While they may be allowed to maintain existing products, launching new services will not be permitted.
Late applicants will still be able to seek approval, but the FCA has warned that their applications could take longer to process, increasing the risk of prolonged operational constraints.
A Clear Signal to the Crypto Industry
Taken together, the timeline sends a clear message to the crypto sector: access to the UK market will soon depend on full regulatory approval, not interim registrations or workarounds. For firms aiming to operate long-term in one of Europe’s largest financial hubs, early preparation for the new licensing regime is no longer optional.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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Source: https://coindoo.com/uk-confirms-application-window-for-mandatory-crypto-authorization/
