FCA opens crypto authorisation gateway ahead of 2027 rules

The Financial Conduct Authority opened its crypto authorisation gateway on 30 September, starting a year-long transition to a broader UK regime that will require firms to obtain permission to conduct regulated cryptoasset activities. The FCA says applications must be submitted by 28 February 2027, ahead of the regime’s start on 25 October that year.

Under the new system, firms can apply for authorisation or, if they already hold FCA permissions under the Financial Services and Markets Act, apply to vary them. Applications go through the FCA’s Connect system. The regulator expects to decide applications made during the window before the regime begins, but says approval is not automatic.

What changes for firms already registered in the UK?

Money Laundering Regulations registration will not convert automatically into authorisation. The FCA says firms registered under the MLRs, as well as some firms registered or authorised under payment or electronic money rules, will need FSMA authorisation to carry out the new regulated activities. That raises the bar from a registration focused on anti-money-laundering controls to a wider assessment of consumer protection, customer-asset safeguarding, market integrity and financial resilience.

The FCA’s announcement of the application opening sets out those assessment standards. The Block’s report on the new gateway also notes that June’s rules cover activities including trading, transactions, staking and custody.

Can firms keep operating while the FCA reviews an application?

Firms that apply during the window can continue providing cryptoasset services, including taking on new business, if their applications remain undecided when the regime starts. The FCA expects to determine applications before then, but its gateway guidance says a saving provision allows qualifying applicants to continue until a final decision.

The position is tighter for firms that miss the application window. They may still apply later, but the FCA says it will not speed up its review to make up for a late submission. If they lack the required permissions when the new regime takes effect, they enter a transitional provision that limits new UK customer contracts to services needed to fulfil existing contracts. Firms that do not apply must run off their UK crypto business before commencement.

What will show whether the transition is on track?

The first signal is the quality and pace of applications before the 28 February deadline: the FCA has urged firms to apply early and says incomplete submissions can face rejection or delay. Firms will also need to show how their systems address the wider standards, rather than rely on existing registration as proof of readiness. The key milestones are whether the FCA determines applications before 25 October 2027 and how many firms meet the threshold to keep serving UK customers under the new regime.