FCA to Open UK Crypto Licensing Applications in September 2026

Highlights:

• UK crypto firms must get FCA approval before the new rules start.
• Application window expected September 2026, with firms required to have full authorization before launch.
• Late firms can keep contracts, but cannot start new UK services.

Financial authorities in the United Kingdom have set a clear schedule for a new crypto licensing framework. On Thursday, the Financial Conduct Authority (FCA) announced that companies planning to operate in the UK must obtain full authorization before the regime officially starts. Under the new system, crypto asset service providers will be able to submit applications for entry starting this fall. The FCA noted that it expects the application period to open in September 2026, while the exact timeline will be confirmed later.

UK's FCA will open the crypto licensing gateway in September 2026, ahead of a new regime taking effect in October 2027. Existing AML or payments registrations will not carry over and must be re-approved. Firms that miss approval deadlines will be placed in a transitional regime,…

— Wu Blockchain (@WuBlockchain) January 9, 2026

UK Sets Clear Deadline for Crypto Firms to Secure Full Approval

The regulator also expects that applications submitted during this window will be processed before the framework begins. The new licensing regime is expected to go live on October 25, 2027. This gives companies a defined period to prepare for compliance. 

All companies offering regulated crypto services in the UK must get approval under the Financial Services and Markets Act. This also applies to businesses already registered under existing Money Laundering Regulations or payment-related frameworks. 

“In particular, firms that are registered with us under the MLRs should note that there will be no automatic conversion and that they will need to secure authorisation by us under FSMA prior to the commencement of the new regime,” the FCA clarified. Firms already authorized under FSMA for other financial activities must adjust their existing permissions to cover crypto services before the new rules take effect.

Firms that miss the application period will still be allowed to keep their existing contracts. However, they will not be allowed to start new UK-regulated crypto activities. The application window must last at least 28 days and must close no later than 28 days before October 25, 2027.

Late applications can still be sent, but the review process will take more time. The FCA warned that companies that miss the window may face limits on their operations. Because of this, the regulator stressed the need to apply on time. The new licensing framework is designed to place all crypto services in the UK under clear regulatory control. It also aims to protect investors and set firm operating rules for service providers.

UK Plans Full Cryptocurrency Regulation and Opens Public Consultations

The United Kingdom’s financial regulator has begun a new stage in crypto oversight by opening public consultations. The Financial Conduct Authority released three papers covering crypto markets, crypto services, and user protection. Firms have until February 12, 2026, to review and respond. The FCA said the goal is to support responsible crypto activity while helping users understand the risks.

British regulator kicks off consultation on new crypto rules https://t.co/pQ0a8z8JlH pic.twitter.com/NKzabawsMh

— Reuters UK (@ReutersUK) December 16, 2025

Also, the United Kingdom has announced a plan to fully regulate the crypto industry. Starting October 2027, crypto companies must follow existing finance laws and will be directly supervised by the Financial Conduct Authority. This comes as digital asset use grows and user safety concerns rise.