The Financial Conduct Authority (FCA) has published its final guidance on which cryptoasset activities will need authorisation under the UK’s new regulatory regime. The guidance sets out a firm timeline and leaves little room for businesses that hoped branding might keep them outside the regulatory perimeter.
From 25 October 2027, any firm carrying out regulated cryptoasset activities in the UK will need FCA authorisation, unless it qualifies for an exemption or a transitional provision, as discussed by Cardamon CEO Areg Nzsdejan in a recent LinkedIn post.
The regime covers a broad range of activities, including safeguarding cryptoassets, operating a cryptoasset trading platform, dealing in cryptoassets as principal or agent, arranging cryptoasset transactions and certain types of staking.
The most significant element of the guidance may be the regulator’s focus on function over form. The FCA has made it clear that it will judge firms on what they actually do, not on how they describe themselves. A business that calls itself a “wallet”, “exchange”, “platform” or “broker” will not decide its own regulatory status by choosing that label. The underlying activity will decide it. This approach closes a potential loophole and means firms across the digital asset ecosystem will need to look closely at their operating models.
The timetable is now fixed. The application window opens on 30 September 2026. Firms that want to benefit from the transitional arrangements must apply by 28 February 2027. The full regime then takes effect on 25 October 2027. That leaves firms roughly five months to prepare and submit applications if they want transitional protection, which is a tight timeframe given how demanding FCA authorisation processes usually are.
The guidance also tackles an assumption that could catch some firms out. Existing FCA registrations and permissions will not convert automatically to the new regime. Firms already registered with the regulator, including those registered under anti-money laundering rules, will need to assess whether they require a fresh authorisation or a variation of permission.
For the UK crypto sector, the message is clear. The move from a registration-based system to full authorisation marks a step change in regulatory expectations, bringing cryptoasset firms closer to the standards applied to traditional financial services. Businesses that delay their assessments risk missing the transitional window and facing disruption to their UK operations.
As the application window approaches, compliance teams, legal advisers and RegTech providers are likely to see a surge in demand. Firms will be looking to map their activities against the new perimeter and build applications that can withstand FCA scrutiny.
Copyright © 2026 RegTech Analyst
Copyright © 2026 RegTech Analyst
