FCA cryptocurrency regulation: UK firms can now apply

FCA cryptocurrency regulation in the UK moved from plan to practice when the Financial Conduct Authority began accepting applications for authorisation from crypto firms. For the first time, firms offering cryptoasset services will be brought into full FCA regulation. If you hold or trade crypto through a UK platform, this is the process that will decide which companies are allowed to serve you.

The protections themselves are not live yet. The new regime does not come into force until 25 October 2027, so the time until then is a preparation period for firms and a waiting period for customers.

The change in plain English

Until now, crypto businesses operating in the UK have not faced full FCA regulation. Under the new regime, they will have to meet the regulator’s standards on consumer protection, safeguarding of customer assets, market integrity and financial resilience. The FCA published its final crypto rules and guidance in June 2026, and the application window has now opened.

The FCA said the move gives people who invest in crypto “protections they have never had before” and gives the sector “clarity and legitimacy”. Dominic Cashman, the FCA’s director of authorisation, said: “The UK’s new crypto regime will give consumers greater protections and firms a clear framework to operate in. Firms can now apply for authorisation and start preparing for regulation.”

Authorisation is not automatic. The FCA said firms must clearly demonstrate that they meet its requirements, and those that cannot will not be authorised. They will then be unable to continue offering regulated cryptoasset services in the UK.

Who is affected, and how

The most direct effect is on cryptocurrency companies seeking UK approval. The FCA said firms that intend to carry on operating in the UK should apply by 28 February 2027. Firms can request a pre-application support meeting, and the FCA has put webinars on its rules online for on-demand viewing.

Existing firms get some breathing space. According to the FCA, those that apply during the application period can keep providing cryptoasset services, including taking on new business, while their application is assessed, if no decision has been made by the time the regime starts. The FCA said it expects to determine applications submitted in the window before 25 October 2027.

For customers, nothing changes today. Your platform does not become safer simply because it has applied. The FCA’s statement does not give figures for application fees or say how many firms it expects to apply, so those details are not covered here. It also does not set out what happens to firms that apply after the February deadline.

A worked example: the timeline

The dates are easier to grasp laid out with the gaps between them. The table below uses the FCA’s published dates and our own count of the days between them. The FCA’s statement does not give a calendar date for the opening of applications, so none is shown.

Take a hypothetical firm that already serves UK customers and submits its application on the last day, 28 February 2027. It would then have 239 days before the regime starts for the FCA to reach a decision. If the FCA has not decided by 25 October 2027, the FCA said that firm can keep trading and taking new customers while it waits. If the FCA refuses the application, the firm cannot continue offering regulated cryptoasset services.

Now take a customer with, say, £5,000 on that platform. Between now and October 2027 the FCA’s new standards do not yet apply to that money. After the regime starts, the platform will have to be authorised, or be awaiting a decision, to carry on serving that customer.

What to do now

First, find out whether your platform or wallet provider has said it is applying for FCA authorisation. A firm that intends to stay in the UK market has until 28 February 2027, so a clear answer from it should be possible within months. If a provider will not say what it plans to do, that tells you something too.

Second, read the FCA’s June 2026 final rules and guidance, or at least the summary pages, so you know what the standards on safeguarding customer assets actually require. The press statement describes the standards in general terms only. Third, do not move money in a hurry because of this announcement. Nothing in the FCA’s statement requires customers to act.

Finally, treat any firm that claims to be authorised with caution until you have checked it against the FCA’s own information. Applying is not the same as being authorised, and the FCA has been explicit that authorisation is not automatic. Anyone telling you otherwise is overstating the position.

Your questions answered

Is my cryptocurrency protected now?

Not under the new regime, which starts on 25 October 2027. The FCA said the rules will cover consumer protection, safeguarding and financial resilience, but its statement does not say you will be protected against price falls. It also does not say what compensation arrangements, if any, will apply, so check the final rules before assuming any specific cover.

Can my platform keep operating while it waits for approval?

According to the FCA, existing firms that apply during the application period can continue providing cryptoasset services, including taking on new business, while their application is assessed. This applies if no decision has been made by the time the new regime comes into force. The regulator expects to decide applications submitted in the window before that date.

What happens if a firm is refused authorisation?

The FCA said firms that do not meet its standards will not be authorised and will not be able to continue offering regulated cryptoasset services in the UK. The statement does not describe what that would mean for customer balances in practice. If your provider were refused, you would need to look to its own communications and the FCA’s guidance on next steps.