sIt has been announced by the United Kingdom’s FCA that they will begin offering a gateway to a license for crypto in 2026. The related laws regarding authorized UK crypto firms will come into action in 2027.
FCA Sets 2026 Gateway for UK Crypto Firms
Recently, the Financial Conduct Authority (FCA) has declared that a window for the release of licenses for crypto players will be opened in September 2026. This shall happen before the new regulatory framework that would be applicable from October 2027.
Every crypto business in the UK is supposed to register under the FSMA. It has been made clear by the FCA that existing registrations under the anti-money laundering regulations or payment schemes will not automatically get carried over in the new framework.
Those UK crypto firms which do not manage to gain approval under the new system in place will fall under a transitional category. Even if they can continue with the provision of the same services, they cannot roll out any new services.
The FCA made it clear that all licensed firms within the MLRs should not expect an easy transition. This is because each of these firms has to reapply for authorization under FSMA before the new regime becomes effective.
Even companies already approved to operate other FCA-regulated activities would be exempted. Such firms would have to vary their existing permissions for crypto assets services within the set deadline.
This is a positive turnaround from FCA’s earlier stance on this matter. In May of last year, it had proposed a ban on the use of credit cards for digital assets purchases on UK crypto firms.
Some of the major exchanges are already adapting to this new setting. It has been observed that the recent re-entry of Bybit to the UK market was based on an “ readiness-driven move.”
In a publication by Block of Fame, the Senior Policy Director for the exchange, Mykolas Majauskas, explained that the relaunch involved significant preparation work done in the areas of governance and consumer protection.
Firms to Face Tight Application Window and Transitional Limits
The regulator has set a period for the application that will be strictly controlled. This will take a minimum of 28 days, and no later than 28 days prior to the new regulatory framework coming into effect. This is expected to ensure any form of application is reviewed before the new regulations are fully enforced.
The draft legislation includes what is called a “saving provision.” This would give crypto firms in the UK permission to continue operating while their applications were under review. But those companies missing the window-or failing to get approved in time-would be allowed to offer only existing offerings.
In another development, the UK Treasury came up with a bill for cryptocurrency to ensure compliance with financial services regulations. Implementation of the bill is also expected by October 2027.
Source: https://coingape.com/uk-crypto-firms-face-new-licensing-rules-as-fca-sets-2026-application-window/
