UK Financial Conduct Authority opens crypto firm applications

The United Kingdom’s Financial Conduct Authority (FCA) has officially opened the application window for cryptoasset firms to seek authorization under a new regulatory framework. Companies intending to continue operating in the UK must submit their applications by February 28, 2027, ahead of the full regime taking effect on October 25, 2027.

The new regulations, established under the Financial Services and Markets Act, will subject the sector to comprehensive oversight. The FCA will evaluate applicants based on four key pillars: consumer protection, safeguarding of client assets, market integrity, and financial resilience. Authorization is not automatic; firms must demonstrate compliance to avoid being barred from the market.

The framework introduces specific requirements, including minimum capital thresholds ranging from £75,000 to £750,000 depending on the activity type. Notably, the rules distinguish between different types of crypto activities, such as treating yield lending differently from Bitcoin collateral. Existing firms currently registered under anti-money laundering regulations must undergo this fresh authorization process to meet the broader standards of the new regime.