The United Kingdom has launched regulated crypto activities. Previously, crypto firms operated under a mix of limited registrations and opaque rules as policymakers worked to update the regulatory regime. These firms now fall under the remit of the UK Financial Conduct Authority (FCA), which issued a statement today saying digital asset firms must apply for approval to continue operating in the country.
Saying it wants to support innovation and growth, the FCA explained that applicants must demonstrate they meet its requirements, and those that do not meet the standards will not be authorized to operate in the UK market.
Crypto firms that want to operate in the UK must apply by February 28, 2027, with the new regime coming into force on October 25, 2027.
The FCA published its final crypto rules in June 2026. The rules are underpinned by the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026, which were passed by Parliament on February 4, 2026
The rules cover crypto activities such as issuance, trading, custody, staking, lending and more. The regulations incorporate consumer and business protections. Tokenization, or digital securities, is not part of the crypto regime. The rules include stablecoin issuance, and management incorporates statutory reserve requirements. Passive income or yield is not allowed.
Emma Banymandhub, CEO of The Payments Association, said the FCA crypto authorization gateway moves policy into practical delivery, and firms can now apply. The Association welcomed the rules.
“It’s encouraging to see an approach that reflects concerns raised by our members, who have consistently emphasized the need for proportionate regulation that protects consumers without unnecessarily constraining innovation and growth. Consumers will have greater transparency and access to a formal complaints process, while firms will have greater clarity on how the regime applies to their businesses and which activities may require FCA authorization. A proportionate approach to implementation will also be important to creating the conditions for payment stablecoins to develop and supporting the UK’s ambitions as a competitive global hub for digital assets,” said Banymandhub.
She said they will continue to support their members as they navigate the process of building innovative applications.
“Success now depends on effective implementation, particularly for the smaller and scaling firms that play an important role in UK innovation. A well-run, proportionate authorisation process will be important to maintaining the UK’s competitiveness and building a trusted market for digital assets.”