UK crypto firms face fresh FCA authorization process

The UK Financial Conduct Authority has issued final guidance requiring crypto firms to reassess their permissions before applications open on Sep. 30 for a regulatory regime taking effect in October 2027.

FCA guidance defines which crypto firms need approval

The Financial Conduct Authority said on Sep. 16 that its final perimeter guidance will help companies decide whether their products and services require authorization under the incoming framework.

Activities within the guidance include issuing qualifying stablecoins, running crypto trading platforms, dealing in digital assets and arranging transactions. Safeguarding cryptoassets and arranging staking services may also require FCA approval, depending on how a company operates.

Rather than relying on a firm’s description of its business, the regulator’s guidance examines the functions it performs. A company may therefore need to assess each service separately when identifying the permissions required for its business model.

Existing FCA registrations will not automatically become authorizations under the new rules. Firms already holding other regulatory permissions may need to request a variation of permission if they plan to conduct one or more regulated crypto activities.