On 29 January 2026, the Financial Conduct Authority (FCA) held is introductory webinar for the New Regime for Cryptoassets Regulation – Authorisations, providing greater clarify on the future regulation of cryptoassets in the UK. As Cryptoassets move into the UK’s mainstream regulatory framework, the FCA is providing a clearer image of what regulation will look like in practice.
The webinar builds on the FCA’s recent consultation papers, confirming the transition from an anti-money laundering (MLR) registration regime to a full, Financial Services and Markets Act 2000 (FSMA) based authorisation model. This will bring cryptoassets under traditional regulatory standards and supervision from the FCA.
Firms operating in, or targeting, the UK cryptoasset market must act now to prepare for this shift. From 25 October 2027, any firm carrying on a regulated cryptoasset activity under FSMA without FCA permission will be acting unlawfully.
Authorisation:
The FCA is bringing cryptoasset activities under the same authorisation standards as traditional financial services, reflecting its view that cryptoasset activities pose comparable risks. The FCA has reiterated its long-standing principle of “same risk, same regulatory outcomes”, which will apply fully to cryptoasset firms seeking authorisation.
During the webinar, the FCA was explicit that:
- Regulatory standards will not be lowered for cryptoasset firms;
- The FCA will support firms that are “ready, willing and organised”; and
- Firms are expected to have a credible implementation plan by go-live, even if not all frameworks are fully operational at the point of application.
Key Dates and Regulatory Milestones:
- July 2026: Pre-Application Support Service (PASS) Opens
Pass will launch, offering free, non-mandatory engagement with FCA case officers for cryptoasset authorisations.
- 30 September 2026: Gateway Opening
The FCA will begin accepting new applications and Variations of Permissions (VoPs)
- 30 September 2026 – 28 February 2027: Application Period for Existing Cryptoasset Firms
The FCA expects that cryptoasset firms already operating in the UK will apply for authorisation during this period to maximise the chances of authorisation before the commencement date.
- 25 October 2027: Commencement Date
Subject to final Parliamentary approval, the new cryptoasset regime will come into force on this date.
Scope of Regime:
During the webinar, the FCA confirmed that the Cryptoasset regime will be significantly broader than the current MLR framework. They emphasised a trade-lifecycle lens, where they aim to capture risks across pre-trade, execution, and post-trade stages.
Firms may be included in this broader regime if they conduct activities including issuance of qualifying stablecoins in the UK, cryptoasset custody, operating or arranging a qualifying cryptoasset trading platform, dealing in qualifying cryptoassets (as principle or agent), arranging deals ins qualifying cryptoassets and cryptoasset staking.
Who is Affected:
The FCA clearly defined the regime’s perimeter and how different firm types will be impacted:
- No Grandfathering: There will be no automatic transition from MLR registration to FSMA authorisation. All firms must apply for authorisation or a VoP.
- Existing FCA-Authorised Firm: Must submit a VoP to add cryptoasset activities. Existing permissions do not guarantee prioritisation.
- Existing MLR-Registered Firms: Must obtain FCA permission under FSMA to continue operating.
- Section 21 Financial Promotion Approvers: Will require appropriate authorisation to continue approving cryptoasset financial promotions under the new regime.
- Payment Services and E-Money Firms: Will require authorisation if conducting regulated cryptoasset activities.
- Appointed Representatives: The FCA confirmed there will be no appointed representative model for cryptoasset activities.
Assessing Applications:
The FCA framed cryptoasset authorisation around 3 central questions:
- What do you want to do? What is the business model, activities, target customers, products and funding for your firm?
- Who will do it? Does the senior management and staff have the competence, integrity and understanding of the firm’s risks and outcomes?
- How will you do it? What are the governance, controls, risk management and customer protection frameworks in place at your firm?
The FCA stressed the importance of early and transparent engagement, high-quality and firm-specific applications, and meaningful interaction with FCA case officers. Common causes of rejection include unclear accountability, weak risk understanding, poorly designed controls and “shell” applications lacking substance.
Applicants should also expect iterative engagement, including information requests, workshops and senior management interviews. The FCA also confirmed it will use a “minded to authorise” stage to support firms in achieving operational readiness through limited permissions prior to full authorisation.
Saving and Transitional Regimes:
In the webinar, the FCA outlined two additional processes to help firms manage the operational disruption of authorisation.
- Saving Provisions
Allows firms that applied during the Application Period (30 September 2026 – 28 February 2027), but have not received decisions on their applications, to continue operating under the old regime until a decision is reached.
- Transitional Provisions
Allows firm applying after the Application Period or unsuccessful applicants to serve existing customers for existing services. Under this provision, unsuccessful applicants are expected to run off their UK business.
Outside of these provisions, firms that do not apply for authorisation or have their submission rejected as invalid, must run off their UK business before the regime’s commencement date. If firms fail to do so, they would be conducting unauthorised business and carrying on activities without permission.
FCA Support Channels:
The FCA reaffirmed its commitment to supporting firms applying for authorisation or a VoP. It will publish consolidated guidance covering authorisation, supervision, and enforcement expectations, alongside a rolling programme of sector-specific webinars. Application forms are expected to be published in H2 2026.
The FCA strongly encourages firms to engage with PASS ahead of submitting an application.
What Should Firms Do Today:
The FCA urged firms to act soon and not delay preparing for the new cryptoasset regime:
Firms should:
- Map their current and planned cryptoasset activities against the proposed FSMA perimeter;
- Determine if they will require a VoP or a full authorisation;
- Engage in the FCA’s consultations on prudential, conduct and fees regimes for cryptoasset firms; and
- Prepare for early enegagement through PASS once available.
How Can Complyport Help:
The FCA’s transition to a full FSMA cryptoasset regime will impact firms across areas including regulatory perimeter assessments, authorisation, governance, prudential resilience and ongoing compliance. Complyport supports firms in preparing for and navigating this new regime through the following services:
- Regulatory Perimeter (PERG) assessments: to help determine in-scope cryptoasset activities and required permissions;
- FSMA Cryptoasset Authorisation: support and advise firms through their authorisation applications including assistance with documentation;
- Variation of Permission (VoP): assist existing FCA-authorised firms expand into authorised cryptoasset activities;
- PASS Readiness: provide guidance to firms on how to prepare effectively for PASS meetings;
- Goverance, Systems and Controls Reviews: prepare firms to be “ready, willing and organised” in line with FCA expectations; and
- Prudential Framework and Capital Adequacy Assessments: reviews and support for firm’s prudential and capital requirements including wind-down planning.
Contact us today to book a meeting with one of our Subject Matter Experts and ensure your firm is fully prepared for the UK’s crypto regulatory future.
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