Cryptocurrency firms that intend to continue operating in the U.K. should apply by Feb. 28, 2027, ahead of the new framework that will take effect on Oct. 25, 2027. The FCA published its final crypto rules and guidance in June, according to the release.
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The new regulatory framework is part of the U.K.’s effort to become a trusted place for building and investing in crypto-asset businesses, the release said.
The framework includes clear standards for consumer protection, safeguarding of customer assets, market integrity and financial resilience. It aims to give crypto investors new protections and give the crypto sector clarity and legitimacy, per the release.
The FCA expects to decide on applications before the new framework takes effect. If it does not, then existing firms that applied during the application period will be able to continue providing crypto-asset services while their application is being considered. Firms that fail to show they meet the necessary standards will not be authorized to operate in the U.K. market, according to the release.
“The U.K.’s new crypto regime will give consumers greater protections and firms a clear framework to operate in,” Dominic Cashman, director of authorization at the FCA, said in the release. “Firms can now apply for authorization and start preparing for regulation.”
When the FCA issued its new digital asset regulations on June 30, the FCA said the legislation earlier in the year made crypto part of its regulatory umbrella.
“We’ve created a framework that doesn’t force firms to choose between regulatory certainty and room to innovate—this regime means they can have both in a stable, competitive home to build and grow,” David Geale, executive director of payments and digital finance at the FCA, said at the time in a press release. “For consumers, it means firms will be held to similar standards to other financial providers, though we can’t regulate away risk.”
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