The UK Financial Conduct Authority (FCA) has officially launched its mandatory licensing regime for crypto-related businesses. This framework applies to cryptocurrency exchanges, custody providers, stablecoin issuers, and firms facilitating staking services. Companies operating in the UK must submit their authorization applications by February 28, 2027.
Full enforcement of the new regulations is scheduled for October 25, 2027. By this date, any firm that has not secured a full license must cease offering regulated crypto services in the country. The regulator emphasized that existing anti-money laundering registrations will not be converted into the new licenses, requiring all businesses to undergo the full application process from scratch.
The FCA will evaluate applicants based on criteria including consumer protection, asset safety, market integrity, and financial resilience. Approval is not guaranteed, and firms that fail to meet these standards will be denied authorization. Companies that submit their applications before the deadline may continue serving customers while the regulator reviews their filings.
Firms that fail to apply by the deadline or do not receive approval will be prohibited from signing new customers or entering into new agreements. These entities must wind down their UK operations before the October 2027 deadline to avoid penalties for conducting unauthorized financial business. The regulator expects to issue decisions on all timely applications before the enforcement date.
