UK’s FCA Helps Crypto Firms Prepare for New Regulatory Regime

The United Kingdom’s Financial Conduct Authority posted information for firms that want to offer crypto asset-related services in the country under the crypto asset regulatory regime that is expected to come into effect in 2027.

“Firms wishing to undertake any of the new crypto asset regulated activities will need to be authorized by us under FSMA [The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025] with permission to undertake those activities at the point the new regime commences,” the regulator said in an announcement published Thursday (Jan. 8).

The information published to help firms prepare for the new regulatory regime covers crypto asset regulated activities; the FCA’s standards for crypto asset firms and individuals; the regulator’s approach to authorization, supervision and enforcement for firms that undertake these activities; a gateway for firms that want to undertake crypto asset activities; and a proposed transitional provision that will allow existing crypto asset firms that fail to secure authorization to wind down their U.K. business in an orderly way.

“Over the coming months, we will continue to publish further policy consultations setting out our proposed rules and guidance,” the FCA said in the announcement. “Following consideration of the responses to these consultations, our final rules and guidance will be set out in policy statements ahead of the implementation of the new regime.”

The FCA said in September that it proposed rules to promote good business practices among cryptocurrency firms and expects to publish final rules in 2026.

The proposals will expand the FCA’s regulatory remit to include protecting consumers from poor business practices, helping to build trust in the crypto sector, and ensuring that firms are operationally resilient and prepared to fight crime. Many of the proposed rules already apply to traditional financial firms.

It was reported in August that the U.K. crypto industry praised a decision by the FCA to end its ban on offering crypto exchange-traded products to retail investors. Members of the industry likened the move to the so-called “Big Bang” regulatory rollbacks that happened in the U.K. in 1986 and said it could signal a “seismic shift” in the acceptance and adoption of digital assets.