UK Cryptoasset Regime: The FCA Authorisation Gateway is Now Open
On 30 September 2026, the Financial Conduct Authority ("FCA") opened its authorisation gateway for firms wishing to carry on regulated cryptoasset activities in the UK. This follows the FCA's publication on 16 September 2026 of its final perimeter guidance in Policy Statement PS26/18 ("PS26/18"), which explains when firms will need authorisation under the new regime.
Background
The new regime is established by the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (the "Cryptoassets Regulations"), which were made [AO1] on 4 February 2026 and will fully come into force on 25 October 2027. The FCA published its final rules for the regime on 30 June 2026 in a package of policy statements (PS26/9 to PS26/13).
What is In Scope?
The Cryptoassets Regulations introduce a new type of specified investment, the "qualifying cryptoasset." Broadly, this is a cryptoasset that is fungible, transferable, and not solely a record of value or contractual rights. E-money, fiat currency, central bank digital currencies and certain limited network tokens are excluded. Cryptoassets that are already specified investments, such as security tokens, remain within the existing perimeter.
The new regulated activities are:
- Issuing a qualifying stablecoin in the UK;
- Safeguarding qualifying cryptoassets (and certain specified investment cryptoassets), and arranging such safeguarding;
- Operating a qualifying cryptoasset trading platform;
- Dealing in qualifying cryptoassets as principal or as agent;
- Arranging deals in qualifying cryptoassets; and
- Arranging qualifying cryptoasset staking.
Cryptoasset lending and borrowing are not standalone regulated activities. However, PS26/18 explains that they fall within the dealing and arranging activities.
Overseas and Existing Firms
An overseas firm that operates a trading platform, deals or arranges deals in qualifying cryptoassets with or for UK consumers will be treated as carrying on that activity in the UK, and will need authorisation. This is not the case where the overseas firm reaches UK consumers only through an authorised firm that deals as principal or operates a UK trading platform. Overseas firms dealing only with UK institutional clients should not generally need authorisation.
Firms that are already registered under the Money Laundering Regulations 2017 (the "MLRs"), or authorised under the Financial Services and Markets Act 2000, the Payment Services Regulations or the Electronic Money Regulations, should note the FCA's statement that "existing registrations or permissions will not convert automatically." These firms will need to apply for the relevant new permissions if they carry on regulated cryptoasset activities. Once authorised, a firm acting as a cryptoasset exchange provider or custodian wallet provider will not need a separate registration under the MLRs, but it must notify the FCA.
Why the Application Window Matters
The application window runs from 30 September 2026 to 28 February 2027. When a firm applies has important consequences under the transitional provisions in the Cryptoassets Regulations:
- A firm that applies within the window, and whose application has not been determined by 25 October 2027, may continue its activities while the FCA considers the application. This protection ends two years after the regime comes into force.
- A firm that applies after the window closes, but before 25 October 2027, benefits only from a narrower exemption. The same applies to a firm whose application is withdrawn, or refused with no further right of review. Such a firm may continue only to the extent necessary to perform contracts it entered into before the exemption started to apply.
Firms that want to continue their UK business without interruption should therefore apply within the window.
What Next?
The perimeter is not yet fully settled. On 15 September 2026, HM Treasury laid before Parliament the draft Financial Services and Markets Act 2000 (Cryptoassets) (Miscellaneous Amendments) Regulations 2026, which would introduce new exclusions from some of the regulated cryptoasset activities. These include exclusions for certain activities involving UK qualifying stablecoins, proprietary trading, market making and technical services. PS26/18 does not reflect these amendments. The FCA is consulting on updated perimeter guidance in CP26/36, and the consultation closes on 18 November 2026.
Firms whose business models may be affected, particularly those dealing, arranging or carrying on activities involving UK qualifying stablecoins, should revisit their analysis once the amendments and the updated guidance are finalised.
