The FCA has now provided further detail on how the gateway will operate for firms wishing to undertake new regulated cryptoasset activities in the UK.
For cryptoasset firms, payments firms, e-money institutions, and FSMA-authorised firms with crypto-related business models, the key message from the regulator is clear: do not assume that existing registration or authorisation will carry you into the new regime.
The FCA has confirmed that firms wishing to undertake new cryptoasset regulated activities will need to be authorised under the Financial Services and Markets Act 2000 (FSMA), with permission for the relevant activities. This includes firms currently registered under the Money Laundering Regulations (MLRs), as well as firms authorised or registered under the Payment Services Regulations 2017 or the Electronic Money Regulations 2011. Importantly, there will be no automatic conversion for MLR-registered cryptoasset firms.
For firms already authorised under FSMA, the position is equally important as they will need to apply for a Variation of Permission (VoP) if they intend to carry out the new regulated cryptoasset activities.
The expected application period is due to open on 30 September 2026 and close on 28 February 2027. The application form is expected to be available through the FCA’s online system from 30 September 2026, when the gateway opens.
Firms that apply during the application period can expect the FCA to seek to determine their application before the new regime commences. If the application has not been determined by commencement, a saving provision may allow the firm to continue providing cryptoasset services until the application is finally determined.
By contrast, firms that apply outside the application period should not expect the FCA to expedite their application simply because it was submitted late. If they are not authorised with the required permissions when the regime goes live, they may enter the transitional provision by operation of law. While in that transitional provision, firms will only be able to conduct regulated cryptoasset activities to the extent necessary to perform pre-existing contracts. They will not be able to enter into new contracts with existing UK customers or new UK customers.
For firms that do not intend to apply, the FCA’s message is clear. They must run off their UK cryptoasset business before the new regime commences. Failure to do so could put firms at risk of conducting unauthorised business in breach of the FSMA general prohibition (section 19 FSMA) or, for already-authorised firms, acting without the necessary permission.
The FCA has also made clear that firms seeking pre-application support must come prepared. The FCA’s Pre-Application Support Service (PASS) can be used to request a meeting, but firms must provide meaningful information about their business model, products, services, customer types and analysis of the regulated activities they intend to apply for. A commitment to provide information later will not be enough.
How can Complyport Help
At Complyport, we have already started supporting firms as they prepare for the new cryptoasset regime. This includes helping firms assess whether their activities fall within scope, preparing for FCA PASS meetings, developing the supporting materials needed for those discussions, and beginning the preparation of cryptoasset FSMA authorisation and variation of permission applications.
In practice, firms should now be asking themselves:
- Are our cryptoasset activities within scope of the new regime?
- Do we need a new FSMA authorisation or a variation of permission?
- Have we mapped our business model to the relevant regulated activities?
- Do our governance, financial crime, safeguarding, operational resilience, prudential and conduct arrangements meet FCA expectations?
- Are our supporting documents, financial projections, wind-down plan, systems and controls, and senior management arrangements application-ready?
The FCA gateway should not be treated as a simple form-filling exercise. It is an authorisation process that will require firms to evidence regulatory readiness, a clear business model, robust systems and controls, and a credible understanding of the risks associated with their activities.
Contact Complyport today to speak with one of our Subject Matter Experts and book a meeting to discuss your firm’s cryptoasset authorisation strategy.
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