Cryptocurrency Licensing in the UK: New Rules and Deadlines

Transition to Full-Fledged Regulation of the Crypto Market

UK financial authorities have announced the phased implementation of a full regulatory regime for cryptocurrency companies. The Financial Conduct Authority (FCA) has published an official licensing schedule, which effectively sets new rules for all digital asset market participants. According to the regulator, crypto companies planning to operate in the UK should allow approximately one year to complete the full registration process.

Application Deadlines and Launch of the FCA Regime

Applications for licenses for crypto exchanges and other crypto platforms will open in September 2026. The FCA plans to complete its review of applications before the launch of the mandatory regulatory regime, which will take effect on October 25, 2027. From this date, all crypto exchanges, wallet providers, and related services will officially fall under the financial regulator’s supervision.

The application deadline is set no later than 28 days before October 25, 2027. Companies that submit their documents on time will be able to continue operating until the FCA issues a decision.

Transition Period and Consequences of Delay

Platforms that fail to submit their applications by the deadline or fail to complete their registration by the launch of the new regime will be transferred to special transitional (transitional) rules. This status will allow them to continue serving existing clients and products, but will significantly limit the launch of new services and offerings.

The FCA also allows applications to be submitted after the deadline, but warns that their review may take significantly longer, creating additional regulatory and commercial risks.

Who is affected by the new requirements

Registration under the Financial Services and Markets Act (FSMA) will be mandatory for all companies providing crypto services in the UK. This applies not only to new market entrants but also to organizations already registered under the Money Laundering Regulations (MLRs), as well as companies providing payment services. Automatic transfer or simplified registration is not provided.

Marketing and Promotion Restrictions

The FCA pays special attention to the advertising of crypto products. Companies using partner and affiliate promotion channels are also required to register. Without an FCA license, the promotion of crypto services, including marketing through intermediaries, will be prohibited.

Stablecoins and the Regulatory Sandbox

Currently, the UK has a regulatory sandbox regime for local stablecoin issuers. This allows them to test products without applying standard regulatory restrictions. To participate in this regime, you must submit an application to the FCA by January 18. The regulator has also announced plans to allow businesses to process payments in stablecoins, with the launch of the experiment scheduled for 2026.