This week the UK Financial Conduct Authority (FCA) announced a new “Crypto Gateway“ for firms to register to provide crypto services in the country. A grace period applies: firms must apply by February 28, 2027, to provide services, with the new regime coming into force on October 25, 2027.
This applies to:
- Crypto firms that are registered under the Money Laundering Regulations.
- Firms subject to the Financial Promotions regime where they are marketing crypto to UK consumers.
- Consumers and firms that use, or propose to use, or interact with, qualifying stablecoins or qualifying crypto.
- Issuers of electronic money and payment service providers whose activities intersect with the crypto regime.
- Overseas firms and market participants with an interest in providing crypto services to UK consumers or operating in the UK market.
The goal is to support Fintech innovation while providing regulated services that protect consumers and businesses. As the UK is a leading global financial services center, it is important the regime keeps competition top of mind.
Xapo Bank Director and Head of Public Affairs, Policy and Regulation Joey Garcia shared with CI that the FCA Crypto Gateway is a welcome, long-anticipated advance:
“For years, firms across the industry have called for a clear route to offer digital asset services within a comprehensive regulatory framework. Many have wanted to do things properly but lacked a clear path to full authorization. The gateway marks meaningful progress for the UK. Especially in the context of recent developments in the USA. The real test will be how the framework works in practice. The FCA should draw on the experience of firms that have spent years building and operating regulated digital asset services. Their real-world insight can help shape requirements that address real risks, protect consumers and remain workable for the businesses expected to meet them.”
The UK is well aware of global developments and is watching the legislative machinations in the US. While crypto market infrastructure legislation, the CLARITY Act, failed in the Senate due to recalcitrant opponents and parochial politics, regulators are moving forward with rule updates to protect consumers while providing clarity for participants. The UK seeks to do the same, hopefully better.