Time is of the essence for firms seeking FCA crypto authorisation

The UK’s much-anticipated regulatory regime for firms conducting certain cryptoasset activities is finally due to come into force in October 2027.  Any firm looking to undertake these new regulated activities will need to seek authorisation from the Financial Conduct Authority (FCA), including those that are currently registered as cryptoasset firms under the Money Laundering Regulations 2017 or authorised by the FCA to carry out other types of regulated activities.

To facilitate the transition to this new regime, the FCA is proposing to open an application gateway from 30 September 2026 (a full year before the new rules will take effect) until 28 February 2027.

The FCA’s application gateway

Under the FCA’s plans, firms should therefore be able to submit applications for authorisation via the gateway well ahead of the commencement of the new regime, with the expectation that the FCA will determine these applications before the commencement date. This is a welcome initiative, given that there is likely to be a great deal of interest in obtaining these new permissions and the FCA has previously been subject to criticism over its long wait times for regulatory approvals.

Furthermore, where the FCA has been unable to determine an application before the commencement of the regime, a saving provision is included in the draft legislation that will allow the firm to continue to carry out its cryptoasset activities until its application is decided. This measure should also alleviate pressure on the FCA and firms by ensuring that there is no cliff edge deadline.

Even so, firms will be well advised to avoid reliance on the saving provision and submit their applications as soon as possible following the opening of the window, to mitigate the risk of the FCA being overwhelmed and provide greater certainty for firms wishing to establish themselves in the market.

Preparing to apply for authorisation

Ahead of the application gateway opening, firms should ensure that they have a good grasp on the scope of the proposed regime and an understanding of the FCA’s expectations in relation to the provision of cryptoasset activities.

Cryptoasset firms planning to provide cryptoasset services in or to the UK should therefore familiarise themselves with the Treasury’s draft Statutory Instrument outlining the proposed new regime, as well as the numerous consultation papers issued by the FCA setting out the proposed detailed requirements that are expected to apply.¹ In addition, the FCA intends to run a series of information sessions to provide cryptoasset firms with the opportunity to learn more about the new regime and the authorisation process. The first of these took place on 29 January 2026 and can be viewed on the FCA’s website. Firms intending to apply for authorisation should make good use of these sessions, as they promise to provide helpful insight into the FCA’s expectations for participants in the new regime.

The FCA is also planning to offer a free pre-application support service (PASS) to firms, allowing firms to request pre-application meetings to explain their business models and discuss the authorisation process with the FCA. This will help firms to navigate what will be uncharted territory for many and prepare high-quality applications, which should also help to prevent backlogs in the authorisation process. This service is expected to open in July 2026, and the FCA is strongly encouraging all potential applicants to make use of the service.

Starting early

The FCA is encouraging firms to start planning their applications now, for example by beginning to prepare the firm’s business plan, and identifying individuals to take on key management functions such as CEO and Money Laundering Reporting Officer. The FCA has outlined its expectation for applications to include a credible plan demonstrating how the firm will ensure that it is ready to comply with the regime by the commencement date, even if all elements of the business are not yet in place at the time of application.

The FCA’s plans should help to ensure a smooth transition to the new regime for firms that will require authorisation, provided that the FCA has the capacity and resources to deliver on its promises. Firms should take advantage of the opportunities for early engagement with the FCA via the information sessions and PASS meetings, aiming to prepare high quality applications which limit the risk of delays once the gateway opens. Firms should also aim to submit their applications in good time to ensure that, should there be delays in the authorisation process, they will either have already obtained their authorisation in any event or at least are able to take advantage of the saving provisions that should enable them to continue carrying out the activities after the new regime commences.

1. For example, the FCA has published two Consultation Papers to date on the proposed application of the Handbook to Regulated Cryptoasset Activities, CP25/25 and CP26/4.Client Alert 2026-023