Key Insights
- Crypto News: FCA Sets September 2026 Application Window for Licensing.
- UK firms must obtain FSMA authorization before October 2027 launch.
- No automatic conversion from existing MLR registrations to new regime.
Crypto news from the UK Financial Conduct Authority revealed the application period for the new crypto licensing regime will open in September 2026.
The regulator stated Thursday that crypto asset service providers will have a limited window to apply for authorization under the Financial Services and Markets Act. The full regime is expected to launch on October 25, 2027.
Crypto News: FCA Sets September 2026 Application Window
The Financial Conduct Authority announced Thursday that crypto asset service providers can begin applying for authorization starting in autumn 2026.
The FCA stated it expects the application period will open in September 2026, with confirmation coming in due course via a direction published on its website.
The timeline provides firms with approximately 13 months to prepare applications before the regime goes live.
The application period must be at least 28 days long and must close at least 28 days prior to the commencement of the new regime.
The FCA’s gateway will offer a limited window for applications to be processed before the regime becomes operational. The October 25, 2027, launch date gives firms over one year to secure necessary authorizations.
Part 7 of the Treasury’s draft Statutory Instrument allows the FCA to set a period ahead of commencement during which firms can submit applications for authorization.
Firms already authorized under FSMA will submit variation of permission applications instead of new authorization requests.
The FCA plans to run information sessions for crypto asset firms that may be in scope of the new regime.
These sessions will provide opportunities for firms and advisors to understand more about standards, expectations and how the authorization process will work.
Firms can register interest in attending these sessions. The regulator also offers a pre-application support service where firms can request meetings to discuss business models and authorization processes.
Existing MLR Registrations Require New FSMA Authorization
All companies providing regulated crypto asset services in the UK will need to be authorized under the Financial Services and Markets Act 2000.
The authorization requirement includes crypto entities currently registered under existing Money Laundering, Terrorist Financing, and Transfer of Funds Regulations 2017 and payment-related frameworks.
Firms registered under MLRs must secure authorization under FSMA prior to the commencement of the new regime.
The regulator stated this explicitly to prevent assumptions about automatic transitions. Companies registered under The Payment Services Regulations 2017 or The Electronic Money Regulations 2011 must also obtain new authorization.
Firms already authorized under FSMA to undertake other regulated activities will need to vary their existing permissions before the new regime commences.
This applies to companies with existing FCA authorization for non-crypto activities who want to add crypto services. The variation process requires submitting applications during the specified window.
Crypto asset firms currently using services of another FCA-authorized firm to approve financial promotions will no longer be able to do this.
These firms, referred to as using a section 21 approver, must obtain direct FCA authorization if they wish to continue marketing to UK customers.
Late Applicants Face Operational Restrictions
Firms that apply during the application period will receive expedited review. The FCA will expect to determine applications before the new regime commences.
If determination is not complete, the Treasury’s draft Statutory Instrument includes a saving provision allowing firms to continue providing crypto asset services until applications are finally determined.
The saving provision covers cases where firms have referred FCA decisions to refuse applications to the Upper Tribunal, but the Tribunal has not made a final decision.
Crypto asset firms will be required to notify the FCA that they are using the saving provision as soon as reasonably practicable after the full commencement date.
Firms can submit applications for authorization outside the application period. The FCA warned that it will not expedite the assessment of applications to compensate for late submission after the application period closes.
Vignesh Karunanidhi is a seasoned crypto journalist and content editor with 7 years of experience in the crypto and Web3 space. Throughout his career, he has worked with leading platforms such as Watcher.Guru, Milk Road, BeInCrypto, Captain Altcoin, and Coin Edition, producing over 10,000 news articles, blogs, and guides on cryptocurrency.
