UK’s FCA Prepares Crypto Licensing Gateway for 2026

• FCA opens crypto licensing gateway in Sept 2026; fresh authorisation required for AML and payment-registered firms.

• Firms applying late enter transitional regime, restricted to existing services until full approval under FSMA.

• FCA info sessions and PASS support help firms prepare, but participation doesn’t guarantee approval.

The UK’s Financial Conduct Authority (FCA) will open its crypto licensing gateway in September 2026, months ahead of a new regulatory regime starting in October 2027.

The move affects all firms aiming to operate in cryptoasset activities in the UK. Existing registrations under anti-money laundering (AML) or payment services rules will not automatically carry over.

Hence, all firms must secure fresh authorisation to comply with the upcoming framework. Those that miss the approval deadlines will enter a transitional regime, limiting them to existing services while restricting new offerings.

The FCA made it clear that if firms want to carry out regulated cryptocurrency business, they must be authorized under the Financial Services and Markets Act 2000 (FSMA) when the new regime begins.

These include those that are registered under the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs), and those that have been authorized under Payment Services Regulations 2017 and Electronic Money Regulations 2011. Those who have existing authorizations for different business activities under FSMA have to vary those authorizations before this new system is in place.

Information Sessions and Pre-Application Support

To assist firms, the FCA will run information sessions explaining the new regime, standards, expectations, and authorisation process. These sessions target crypto firms under MLRs, payment, or e-money regulations, as well as FSMA-authorised firms needing permission variations. Additionally, firms not yet registered but potentially impacted can join.

In addition, the FCA provides a free pre-application support service (PASS), where firms can explain their business model, get clarity on the authorisation process, and better prepare their applications.

While meetings are optional and free, the FCA does not provide advice, and participation does not guarantee approval. Firms are encouraged to seek independent legal guidance.

Application Process and Transitional Measures

The Treasury’s draft Statutory Instrument allows the FCA to set an application period of at least 28 days, closing at least 28 days before the new regime starts. The FCA expects the period to open in September 2026. Firms applying during this period should receive determinations before the regime’s start.

However, if delays occur, a saving provision allows firms to continue services until a final decision. Conversely, firms applying late enter a transitional regime, limiting activities to existing contracts until authorisation. Consequently, companies must act promptly to avoid disruptions and potential market exits.

With the gateway approaching, UK crypto firms face a critical deadline. Compliance, preparation, and timely applications will determine whether they continue operating smoothly or enter restricted transitional provisions