UK crypto licence (FCA cryptoasset authorisation)
For firms carrying on the new regulated cryptoasset activities in the UK.
Get in touch- Regulator
- FCA
- FCA application fee
- £2,820 to £28,150
- Decision period
- 6 months
- Regime starts
- 25 October 2027
The UK crypto licence is FCA authorisation under the Financial Services and Markets Act 2000 (FSMA) for the new regulated cryptoasset activities created by the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026.
When we recommend it
We recommend preparing for authorisation now if a firm will carry on any of the new regulated cryptoasset activities in the UK, including firms registered under the Money Laundering Regulations today and overseas firms serving UK consumers. Firms whose main market is the EU should weigh a MiCA authorisation alongside it.
Who needs this licence
Any firm that will carry on a new regulated cryptoasset activity in the UK, or for UK consumers, from 25 October 2027. That includes firms registered with the FCA under the Money Laundering Regulations today, overseas firms serving UK consumers directly, and FCA-authorised firms adding crypto services.
Key dates for 2027
| 28 February 2027Upcoming | The application window closes. Firms that apply by this date keep trading after 25 October 2027 while the FCA decides. |
|---|---|
| 31 July 2027Upcoming | The FCA says firms should not apply for MLR registration after this date, as it is unlikely to decide before the regime starts. |
| 25 October 2027Upcoming | The regime starts. Carrying on a crypto activity in the UK without permission or a saving provision breaches FSMA. |
How we help
We advise on the application and the compliance that follows. For UK crypto firms we scope the permissions, build the capital model and file a complete application inside the FCA window. Firms serving the EU as well can run the UK application alongside a MiCA authorisation.
- Full applicationPermission scoping, entity structure, the business plan, the policy suite and FCA correspondence through to authorisation, filed inside the window.
- Capital and SM&CRThe CRYPTOPRU capital and liquidity model, the senior management map and every senior manager approval, built to the FCA final rules.
- Live complianceConsumer Duty, CASS 17, financial crime and regulatory reporting run from the day of authorisation, plus the MLR notification under regulation 56B.
The application process
- 1Scope the permissionsWe map the business model to the seven new activities and the exclusions in SI 2026/102. Permission choice sets the capital requirement, the fee and the conduct rules, so this is settled first.
- 2Structure and capitalWe confirm the UK entity and any branch, and build the capital model: permanent minimum requirement, fixed overheads requirement, K-factors and liquid assets. Capital is in place before filing.
- 3Governance and SM&CRWe map senior management functions, prepare statements of responsibilities and the management responsibilities map, and prepare each candidate's approval application.
- 4Business plan and policiesWe draft the regulatory business plan, financial projections and the policy suite: Consumer Duty, CASS 17 custody, conduct, financial crime, operational resilience and wind-down planning.
- 5Submit in the windowWe file through FCA Connect between 30 September 2026 and 28 February 2027, with the information document, the financial data template and the correct fee. Firms that already hold Part 4A permission file a variation of permission with the cryptoasset form; payment and e-money institutions file a new Part 4A application.
- 6FCA assessmentWe manage information requests and FCA meetings. The FCA must decide a complete application within 6 months and expects to decide window applications before 25 October 2027.
File inside the window, 30 September 2026 to 28 February 2027. The FCA must decide a complete application within 6 months of receipt and expects to decide window applications before the regime starts on 25 October 2027. Window applicants still awaiting a decision on that date can keep trading under the saving provision.
Requirements and process
What the licence covers
The regime starts on 25 October 2027. From that date, issuing a qualifying stablecoin in the UK, safeguarding cryptoassets, operating a trading platform, dealing as principal or agent, arranging deals and staking all require FCA permission.
The FCA application window opened on 30 September 2026 and closes on 28 February 2027. Firms that apply inside the window and are still awaiting a decision on 25 October 2027 can keep trading, including taking on new business, until the FCA decides. Firms that apply after the window and are not authorised by commencement can only service existing contracts while they wait. MLR registration does not convert: every registered firm must apply.
Authorisation is a full FSMA test. The firm must meet the threshold conditions, hold own funds of at least the permanent minimum requirement for its activities (from £75,000 for dealing as agent or arranging, up to £750,000 for dealing as principal), and apply the Consumer Duty, the Senior Managers and Certification Regime, client asset rules and the FCA conduct rules. FCA application fees run from £2,820 to £28,150 depending on the activity.
The UK crypto licence is authorisation by the Financial Conduct Authority under Part 4A of FSMA to carry on one or more of the new regulated cryptoasset activities. HM Treasury created those activities in the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (SI 2026/102), made on 4 February 2026. The regime starts on 25 October 2027.
The activities are issuing qualifying stablecoin in the UK, safeguarding qualifying cryptoassets, operating a qualifying cryptoasset trading platform, dealing as principal, dealing as agent, arranging deals and qualifying cryptoasset staking. From 25 October 2027, carrying on any of them in the UK without permission breaches the general prohibition in section 19 FSMA.
The FCA application window runs from 30 September 2026 to 28 February 2027. The FCA published its final rules in June 2026, including the CRYPTOPRU prudential sourcebook, and its perimeter guidance in September 2026.
Who needs it, in detail
- Crypto exchanges and trading platforms
- Brokers and OTC desks dealing as principal or agent
- Apps and introducers that arrange crypto trades
- Custodians and wallet providers holding client cryptoassets or keys
- Stablecoin issuers carrying on issuance in the UK
- Staking providers staking client assets
- Crypto lending and borrowing providers serving retail clients
- Banks and investment firms adding crypto services (by variation of permission), and payment and e-money institutions adding them (by a new Part 4A application)
MLR registration does not become a licence. The FCA states there will be no automatic conversion, so every registered firm must apply. An overseas firm is not outside the regime because it has no UK office: it is caught when it deals with, safeguards for or stakes for UK consumers without a UK-authorised intermediary. Crypto lending is not exempt because it has no activity of its own: the FCA treats it as dealing or arranging.
Activities that need a UK crypto licence
SI 2026/102 inserts seven new regulated activities into the Regulated Activities Order. A firm needs FCA permission for each activity it carries on. A "qualifying cryptoasset" is a fungible, transferable cryptoasset, such as bitcoin or ether. Electronic money and central bank digital currency are excluded. A "qualifying stablecoin" is a qualifying cryptoasset that aims to hold a stable value against a fiat currency, backed by fiat or other assets.
| Activity | RAO article | Typical business |
|---|---|---|
| Issuing qualifying stablecoin in the UK | RAO articleArt. 9M | Typical businessSterling or other fiat-backed stablecoin issuers |
| Safeguarding qualifying cryptoassets, and arranging for another person to safeguard them | RAO articleArt. 9N | Typical businessCustodians, wallet providers holding client keys, exchanges holding client assets |
| Operating a qualifying cryptoasset trading platform | RAO articleArt. 9S | Typical businessExchanges running a multilateral order book |
| Dealing in qualifying cryptoassets as principal | RAO articleArt. 9T | Typical businessBrokers and OTC desks trading on own account, lending and borrowing providers |
| Dealing in qualifying cryptoassets as agent | RAO articleArt. 9W | Typical businessBrokers executing client orders |
| Arranging deals in qualifying cryptoassets | RAO articleArt. 9Y | Typical businessApps and introducers that bring about trades |
| Qualifying cryptoasset staking | RAO articleArt. 9Z6 | Typical businessPlatforms staking client assets on their behalf |
Cryptoasset lending and borrowing is not a separate activity. The FCA treats it as dealing or arranging, and its rules apply when retail clients are involved.
Overseas crypto firms and UK authorisation
Yes, in most consumer-facing models. SI 2026/102 extends section 418 FSMA so that an overseas firm is treated as carrying on business in the UK when it sells or buys qualifying cryptoassets with a UK consumer and no UK-authorised intermediary sits between them. The same applies where it safeguards or stakes cryptoassets for a UK consumer other than at the direction of an authorised firm. A "consumer" here means an individual in the UK acting outside any trade or profession.
Stablecoin issuance is caught where the issuing activities are carried on in the UK, including through a UK establishment.
On structure, the FCA generally expects an international cryptoasset firm to hold its authorisation in a UK legal entity. An overseas trading platform may in some circumstances operate through an authorised UK branch alongside a UK entity. Firms also regulated by the Prudential Regulation Authority may operate from a branch where the PRA agrees. The FCA assesses legal form case by case.
What the FCA assesses
The FCA assesses applications against the FSMA threshold conditions: the minimum standards every authorised firm must meet and keep meeting. In its announcement of the gateway the FCA said it judges applicants on consumer protection, safeguarding of customer assets, market integrity and financial resilience.
- Threshold conditions: UK location of offices where required, effective supervision, appropriate financial and non-financial resources, suitability of the firm and its controllers, and a sound business model
- Senior Managers and Certification Regime (SM&CR): senior individuals need FCA approval for their senior management functions and carry personal responsibility
- Consumer Duty: the FCA requirement that firms deliver good outcomes for retail customers, including fair value and clear communications
- Conduct of business (COBS), complaints handling (DISP) and Financial Ombudsman Service access
- Client assets: CASS 17 sets custody rules for client cryptoassets, including segregation, records and reconciliations
- Systems and controls (SYSC), including operational resilience under SYSC 15A
- Prudential rules in COREPRU and CRYPTOPRU: capital, liquidity and an overall risk assessment
- Financial crime controls under the Money Laundering Regulations, including the Travel Rule for cryptoasset transfers
Capital and liquidity requirements (CRYPTOPRU)
The FCA published its final prudential rules in PS26/12 in June 2026. Own funds (the firm's qualifying capital, mainly share capital and retained profits) must be at least the highest of three amounts: the permanent minimum requirement (PMR), the fixed overheads requirement (FOR) and the K-factor requirement (KFR). The PMR is a threshold condition, so a firm cannot be authorised unless it holds it. The FCA declined to phase it in.
The FOR is one quarter of the firm's relevant expenditure in the preceding year, a proxy for the cost of an orderly wind-down. The K-factor requirement scales with activity: for example 1% of the average value of stablecoins in issue for issuers (reduced from 2% in the final rules), 0.04% of the average value of client cryptoassets safeguarded, and 0.1% of the average value of client orders handled. Firms must also hold core liquid assets of at least one third of the FOR plus 1.6% of any client guarantees.
| Permission held | Permanent minimum requirement |
|---|---|
| Dealing in qualifying cryptoassets as principal | Permanent minimum requirement£750,000 |
| Issuing a qualifying stablecoin | Permanent minimum requirement£350,000 |
| Safeguarding cryptoassets | Permanent minimum requirement£150,000 |
| Arranging qualifying cryptoasset staking | Permanent minimum requirement£150,000 |
| Operating a qualifying cryptoasset trading platform | Permanent minimum requirement£150,000 |
| Dealing in qualifying cryptoassets as agent | Permanent minimum requirement£75,000 |
| Arranging deals in qualifying cryptoassets | Permanent minimum requirement£75,000 |
A firm with several permissions holds the highest applicable PMR, not the sum. The £750,000 figure for dealing as principal mirrors the MIFIDPRU initial capital for investment firms dealing on own account.
Stablecoin issuers: the additional rules
Issuing a qualifying stablecoin in the UK is its own permission, with a £350,000 PMR and a K-factor of 1% of the average value of coins in issue. PS26/10 sets the final issuance rules. Backing assets are held on statutory trust for holders. Holders have a right to redeem at par, and the issuer must pay out by the end of the next business day after it receives the coin being redeemed, with identity checks completed beforehand.
Issuers must also meet an issuer liquid asset requirement so they can restore full backing by the next business day if asset values move. Stablecoins that the Bank of England recognises as systemic come under joint Bank of England and FCA supervision. UK-issued qualifying stablecoins are excluded from the restricted mass market investment marketing rules.
Trading platforms, admissions and market abuse
Operating a qualifying cryptoasset trading platform carries a £150,000 PMR and the highest application fee, £28,150. PS26/9 adds an admissions and disclosures regime: platforms set admission criteria, carry out due diligence and require a qualifying cryptoasset disclosure document before a token is admitted. SI 2026/102 also prohibits insider dealing, unlawful disclosure of inside information and market manipulation in qualifying cryptoassets.
PS26/11 sets the platform and intermediary conduct rules. Platform operators may carry out matched principal trading, where the platform stands between buyer and seller without taking market risk, subject to conditions. Best execution requires effective overall arrangements with periodic monitoring rather than checks on every trade.
Firms already FCA-authorised
Banks, investment firms and other firms that already hold FSMA (Part 4A) permission apply to vary that permission, submitting the FCA cryptoasset form with the variation of permission application inside the same window. Payment and e-money institutions authorised only under the Payment Services Regulations or the Electronic Money Regulations hold no Part 4A permission, so they apply for a new Part 4A authorisation instead. A Part 4A firm that starts crypto business after 25 October 2027 without the new permission acts outside its permission under section 20 FSMA.
Financial promotions after commencement
Today, an unauthorised firm can market cryptoassets to UK consumers if an FCA-authorised firm approves the promotion (an s.21 approver), or if the firm is MLR-registered and relies on the Article 73ZA exemption. SI 2026/102 removes Article 73ZA at commencement.
Once authorised, a cryptoasset firm communicates its own promotions and no longer needs an approver. It can also approve promotions for unauthorised companies in its own group. A firm that applied in the window may keep using its s.21 approver until its application is decided.
28 February 2027: what to finish before the application window closes
The FCA application window closes on 28 February 2027, which falls on a Sunday. Applications go through FCA Connect, so firms should plan to file by Friday 26 February 2027 at the latest, leaving working days to fix any upload, signature or fee problem. Filing inside the window is what gives a firm the saving provision: if its application is still being decided on 25 October 2027, it can keep operating, including taking new business, until the FCA decides.
The FCA has said it will reject applications that lack its minimum information and that poor-quality applications face delay or refusal. Its own figures for the current MLR registration regime show how demanding its assessment is: as at 1 October 2026 it had received 427 cryptoasset registration applications since January 2020, registered 68 firms and seen 265 applications withdrawn.
The FCA published an information document on 17 September 2026 listing every question in the application form. It has a core section that applies to most firms and modules that apply by activity. The table sets out what to have final and signed off before filing.
| Component | What the FCA asks for | Applies to |
|---|---|---|
| Permissions and client types | What the FCA asks forEach regulated activity, the client types for each, and any standard limitations | Applies toAll applicants |
| Regulatory business plan | What the FCA asks forAn uploaded plan explaining the business model, activities, customers and how they match the permissions sought | Applies toAll applicants |
| Financial forecasts and capital | What the FCA asks forThe financial data template for payments, e-money and cryptoasset firms, with forecasts (three years is FCA good practice) and evidence of own funds at the permanent minimum requirement | Applies toAll applicants |
| Senior managers, controllers and close links | What the FCA asks forSenior manager approval applications, details of each controller and close link, and an organisational structure chart | Applies toAll applicants |
| Financial crime, compliance and complaints | What the FCA asks forA financial crime prevention framework meeting the Money Laundering Regulations, a compliance monitoring plan and a complaints policy | Applies toAll applicants |
| Records and IT | What the FCA asks forA cryptoasset records management policy and the FCA IT self-assessment | Applies toAll applicants |
| Custody under CASS 17 | What the FCA asks forRecords and reconciliation policy, proof of the safeguarding trust, third-party custodian arrangements and a means of access (private key) policy | Applies toFirms safeguarding client cryptoassets |
| Stablecoin issuance | What the FCA asks forRedemption policy, disclosures, backing asset policy and proof of backing asset safeguarding | Applies toStablecoin issuers |
| Trading platform | What the FCA asks forRulebook and admissions procedures, market abuse framework, conflicts, post-trade transparency and access policies | Applies toPlatform operators |
| Customer disclosures | What the FCA asks forThe disclosure documents customers receive before using the service | Applies toFirms with customers |
Source: FCA, Information about the authorisation application form for cryptoasset firms (version dated 17 September 2026). Authorised firms adding crypto activities answer the crypto-specific questions in a variation of permission application.
UK FSMA crypto authorisation vs current MLR registration
MLR registration is an anti-money laundering gate. FSMA authorisation is a full licence with prudential, conduct and governance rules. One does not convert into the other.
| Point of difference | MLR registration (now) | FSMA authorisation (from 25 Oct 2027) |
|---|---|---|
| Legal basis | MLR registration (now)Money Laundering Regulations 2017 | FSMA authorisation (from 25 Oct 2027)FSMA 2000 and SI 2026/102 |
| Scope | MLR registration (now)Exchange providers and custodian wallet providers | FSMA authorisation (from 25 Oct 2027)Seven regulated activities, including stablecoin issuance and staking |
| Test | MLR registration (now)Fit and proper test and AML controls | FSMA authorisation (from 25 Oct 2027)Full threshold conditions, SM&CR, Consumer Duty, CASS, prudential rules |
| Capital | MLR registration (now)No minimum | FSMA authorisation (from 25 Oct 2027)£75,000 to £750,000 PMR, or higher FOR or K-factor requirement |
| Application fee | MLR registration (now)£11,260 (Category 6) | FSMA authorisation (from 25 Oct 2027)£2,820 to £28,150 by activity |
| Decision period | MLR registration (now)3 months from a complete application | FSMA authorisation (from 25 Oct 2027)6 months from a complete application |
| Individuals | MLR registration (now)No individual approvals | FSMA authorisation (from 25 Oct 2027)Senior managers approved individually under SM&CR |
| Marketing | MLR registration (now)Own promotions under Art. 73ZA | FSMA authorisation (from 25 Oct 2027)Own promotions as an authorised firm |
UK crypto authorisation vs EU MiCA CASP authorisation
Firms serving both markets need both. Neither passports into the other.
| Point of difference | UK FSMA regime | EU MiCA |
|---|---|---|
| Regulator | UK FSMA regimeFCA | EU MiCANational competent authority in the home member state |
| Minimum capital | UK FSMA regime£75,000 to £750,000 PMR by activity | EU MiCA€50,000, €125,000 or €150,000 by service class (MiCA Annex IV) |
| Dealing on own account | UK FSMA regime£750,000 PMR | EU MiCAExchange services fall in the €125,000 class |
| Statutory timing | UK FSMA regime6 months from complete application | EU MiCA25 working days completeness check, then 40 working days assessment (Art. 63) |
| Market access | UK FSMA regimeUK only | EU MiCAPassport across the EEA |
| Stablecoins | UK FSMA regimeUK qualifying stablecoin regime under FCA, with Bank of England for systemic coins | EU MiCAE-money token and asset-referenced token regimes |
The UK PMR for principal dealing is materially higher than MiCA because the FCA aligned it with MIFIDPRU, not MiCA.
Key requirements
Threshold conditions
The firm must satisfy the FSMA threshold conditions at authorisation and on an ongoing basis: effective supervision, appropriate financial and non-financial resources, suitability and a sound business model. International firms are generally expected to hold authorisation in a UK legal entity.
Capital (CRYPTOPRU)
Own funds of at least the highest of the permanent minimum requirement, the fixed overheads requirement (one quarter of the previous year's relevant expenditure) and the K-factor requirement. The permanent minimum requirement is £750,000 for dealing as principal, £350,000 for stablecoin issuance, £150,000 for safeguarding, staking or operating a trading platform, and £75,000 for dealing as agent or arranging. The highest applicable figure applies.
Liquidity
Core liquid assets of at least one third of the fixed overheads requirement plus 1.6% of any client guarantees. Stablecoin issuers also meet an issuer liquid asset requirement.
Senior Managers and Certification Regime
SM&CR applies in full. Senior management function holders need FCA approval, and each has a statement of responsibilities. Larger stablecoin issuers and custodians can become Enhanced firms with additional senior management functions.
Conduct and Consumer Duty
The Consumer Duty, COBS, complaints handling under DISP and Financial Ombudsman Service access apply. Client cryptoassets are protected under CASS 17. FSCS cover does not extend to the new cryptoasset activities.
Financial crime and operational resilience
Money Laundering Regulations controls, including the Travel Rule, continue to apply. Operational resilience under SYSC 15A requires the firm to map important business services and set impact tolerances, meaning the maximum disruption it can tolerate.
What a UK crypto licence costs
The FCA application fee is set per activity under the Cryptoasset Activities (Periodic and Application Fees) Instrument 2026 (FCA 2026/58). A firm applying for several activities pays the highest applicable fee. A firm applying for FSMA authorisation and MLR registration together also pays one fee: the higher of the two.
- Own funds: the PMR for the firm's permissions, or the higher FOR or K-factor requirement, held from the day of authorisation
- Liquidity: core liquid assets of at least one third of the FOR plus 1.6% of client guarantees, and the issuer liquid asset requirement for stablecoin issuers
- Annual FCA fees: authorised cryptoasset firms move into fee-block A.26, charged on UK regulated income. The FCA will consult on the 2028/29 rates using the projections firms submit with their applications
- Financial Ombudsman Service levy, as for other authorised firms
- Third-party costs: audit, blockchain analytics and Travel Rule tooling, custody technology and insurance where used
| Activity | Pricing category | Fee |
|---|---|---|
| Arranging deals in qualifying cryptoassets | Pricing categoryCategory 4 | Fee£2,820 |
| Dealing in qualifying cryptoassets as agent | Pricing categoryCategory 4 | Fee£2,820 |
| Qualifying cryptoasset staking | Pricing categoryCategory 4 | Fee£2,820 |
| Dealing in qualifying cryptoassets as principal | Pricing categoryCategory 6 | Fee£11,260 |
| Safeguarding qualifying cryptoassets | Pricing categoryCategory 6 | Fee£11,260 |
| Issuing qualifying stablecoin | Pricing categoryCategory 6 | Fee£11,260 |
| Operating a qualifying cryptoasset trading platform | Pricing categoryCategory 7 | Fee£28,150 |
UK crypto licence timeline and key dates
FSMA section 55V requires the FCA to decide a complete application within 6 months of receiving it, and any application within 12 months. The FCA has said it expects to decide applications made in the window before the regime starts on 25 October 2027.
A firm that applies in the window and is still awaiting a decision on 25 October 2027 benefits from the saving provision: it can continue its crypto business, including new business, until the decision is final. The saving provision ends two years after commencement. A firm that applies after 28 February 2027 and is not authorised by commencement enters the transitional provision, which allows it only to perform existing contracts while it waits. A firm that does not apply at all must wind down its UK crypto business before 25 October 2027.
Our planning view: a well-prepared application filed early in the window moves on the FCA's own timetable. Firms that build the business plan, capital model, SM&CR map and client asset arrangements before filing give the FCA a complete application from day one, which starts the 6 month clock.
| Date | Event |
|---|---|
| 4 February 2026 | EventSI 2026/102 made by HM Treasury |
| 30 June 2026 | EventFCA final rules published (PS26/9 to PS26/13) |
| 16 September 2026 | EventFCA perimeter guidance published (PS26/18) |
| 30 September 2026 | EventApplication window opens |
| 28 February 2027 | EventApplication window closes |
| 31 July 2027 | EventFCA says firms should not apply for MLR registration after this date |
| 25 October 2027 | EventRegime starts. Unauthorised firms enter the saving or transitional provision, or must have exited |
| October 2029 | EventSaving provision ceases to have effect, two years after commencement |
Why applications fail
Missing the window
An application filed after 28 February 2027 is still accepted, but the FCA will not speed up its assessment. If it is not decided by 25 October 2027, the firm can only perform existing contracts until it is.
Capital below the threshold
The permanent minimum requirement is a threshold condition with no phase-in. A firm that cannot show the correct own funds for its permissions cannot be authorised.
An incomplete application
The 6 month statutory period runs from a complete application. An application that lacks the FCA's minimum information can be rejected and treated as not made, which removes access to the saving and transitional provisions.
Undefined custody model
Firms that hold client cryptoassets must show how CASS 17 segregation, records and reconciliations will work in practice. A custody model that is still in design is not ready to file.
What separates approved applications from delayed ones
- Filing inside the window. Under regulation 53 of SI 2026/102, window applicants keep taking new business after 25 October 2027 while the FCA decides
- Choosing the right permissions. A firm that deals on own account needs the £750,000 PMR; a firm that only brings about trades needs £75,000. Model design drives capital
- Capital in place at filing. The PMR is a threshold condition and the FCA will not phase it in
- Senior managers ready for approval. SM&CR applies in full; candidates, statements of responsibilities and a management responsibilities map are part of the application
- Client asset design. CASS 17 governs how client cryptoassets are segregated, recorded and reconciled. The custody model must be settled before filing
- A UK legal entity with real substance. The FCA generally expects one for international firms
- Consistent projections. The financial projections also feed the FCA's 2028/29 fee modelling, so they must reconcile with the business plan
All key facts
| Regulator | Financial Conduct Authority (FCA). The Bank of England also supervises stablecoins recognised as systemic |
|---|---|
| Legislation | FSMA 2000 and the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (SI 2026/102), made 4 February 2026 |
| Regime start | 25 October 2027 (the full commencement day) |
| Application window | 30 September 2026 to 28 February 2027, through FCA Connect |
| Regulated activities | Issuing qualifying stablecoin, safeguarding (custody), operating a trading platform, dealing as principal, dealing as agent, arranging deals and staking |
| Minimum own funds | £75,000 to £750,000 permanent minimum requirement by activity, or higher where the fixed overheads or K-factor requirement is greater |
| FCA application fee | £2,820 (Category 4), £11,260 (Category 6) or £28,150 (Category 7), set by activity |
| Statutory decision period | 6 months from a complete application; 12 months for an incomplete one (FSMA s.55V) |
| Local entity | The FCA generally expects international cryptoasset firms to have a UK legal entity. A UK branch of an overseas trading platform is possible in some circumstances |
| Existing MLR registration | Does not convert. Registered firms must apply for FSMA authorisation |
| Compensation cover | Financial Ombudsman Service access applies. FSCS cover does not extend to the new cryptoasset activities |
Further reading
Sources
The requirements, fees and timeframes on this page are taken from the following primary regulatory and legislative sources. Rules change, and firms should confirm the current position before relying on any figure.
- FCA: How the cryptoasset gateway will operate
- FCA: What you need to do to prepare for the new cryptoasset regime
- FCA press release: FCA opens the gateway to regulated crypto
- The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (SI 2026/102)
- FSMA 2000 section 55V: determination of applications
- FCA PS26/12: prudential regime for cryptoasset firms (CRYPTOPRU)
- FCA PS26/10: stablecoin issuance
- FCA PS26/11: regulated cryptoasset activities
- FCA PS26/13: applying the FCA Handbook to cryptoasset firms
- FCA Handbook Notice 144: cryptoasset application and periodic fees
- FCA: the transitional provision
- FCA PS26/18: cryptoasset perimeter guidance
- FCA: Information about the authorisation application form for cryptoasset firms (17 September 2026)
- FCA: Cryptoassets, who needs to register (registration statistics)
- FCA: Registration under the MLRs ahead of the new FSMA regime
- FCA: Preparing your firm's financial information
Frequently asked questions
Do I need a crypto licence in the UK?
Yes, from 25 October 2027, if you issue a qualifying stablecoin in the UK, safeguard cryptoassets, operate a trading platform, deal as principal or agent, arrange deals or stake client assets in the UK or for UK consumers. Each activity needs FCA permission under FSMA. Until then, exchange and custody businesses need MLR registration with the FCA.
When is the FCA crypto application deadline?
The FCA application window runs from 30 September 2026 to 28 February 2027. Applications after that date are accepted, but firms not authorised by 25 October 2027 can only service existing contracts while they wait. Window applicants can keep trading normally until the FCA decides.
How much capital do I need for a UK crypto licence?
The permanent minimum requirement is £75,000 for dealing as agent or arranging, £150,000 for safeguarding, staking or operating a trading platform, £350,000 for stablecoin issuance and £750,000 for dealing as principal. A firm must hold the higher of that figure, its fixed overheads requirement and its K-factor requirement.
How much is the FCA application fee for crypto firms?
£2,820 for arranging, dealing as agent or staking (Category 4). £11,260 for dealing as principal, safeguarding or stablecoin issuance (Category 6). £28,150 for operating a trading platform (Category 7). A firm applying for several activities pays the highest applicable fee once.
How long does FCA crypto authorisation take?
FSMA requires the FCA to decide a complete application within 6 months of receipt, or within 12 months if it is incomplete. The FCA expects to decide applications made in the window before 25 October 2027.
Does FCA cryptoasset registration convert into the new licence?
No. The FCA states there will be no automatic conversion. MLR-registered firms must apply for FSMA authorisation, ideally inside the window. Being registered does not guarantee authorisation.
Can an overseas crypto exchange serve UK customers without authorisation?
Not UK consumers directly. From 25 October 2027 an overseas firm dealing with UK consumers needs authorisation unless a UK-authorised intermediary sits between them. The FCA generally expects international firms to authorise a UK legal entity.
What happens if my application is still pending on 25 October 2027?
If you applied in the window, the saving provision lets you continue your crypto business, including new business, until the decision is final. If you applied after the window, you enter the transitional provision and can only perform existing contracts.
Do I need a separate licence to issue a stablecoin in the UK?
Yes. Issuing a qualifying stablecoin in the UK is its own regulated activity, with a £350,000 permanent minimum requirement, a £11,260 application fee, statutory trust over backing assets and redemption at par by the end of the next business day.
Is crypto lending regulated in the UK?
Yes. There is no separate lending activity, but the FCA treats lending and borrowing services as dealing or arranging. Firms offering them to retail clients need the matching permissions and must follow the FCA lending and borrowing rules.
Are crypto assets protected by the FSCS in the UK?
No. The FCA decided not to extend FSCS cover to the new cryptoasset activities. Customers of authorised firms can complain to the Financial Ombudsman Service, and client cryptoassets are protected by the CASS 17 custody rules.
How is the UK crypto licence different from MiCA?
MiCA authorises crypto-asset service providers across the EEA with capital of €50,000 to €150,000. The UK regime covers the UK only, sets capital of £75,000 to £750,000 and applies SM&CR and the Consumer Duty. A MiCA licence gives no UK access, and a UK licence gives no EU access.
Is 28 February 2027 a hard deadline for UK crypto applications?
It is the end of the application window. The FCA will still accept applications after it, but a firm that applies late and is not authorised by 25 October 2027 can only perform existing contracts while it waits. 28 February 2027 is a Sunday, so plan to file by Friday 26 February 2027.
What documents does the FCA expect in a UK crypto authorisation application?
A regulatory business plan, the financial data template with forecasts, evidence of capital, senior manager applications, controller and close link details, an organisational chart, a financial crime framework, a compliance monitoring plan, a complaints policy, a records management policy and the IT self-assessment. Custodians, stablecoin issuers and platforms add activity-specific policies.
How many crypto firms has the FCA registered under the MLRs?
As at 1 October 2026 the FCA had received 427 cryptoasset registration applications since January 2020. It had registered 68 firms, and 265 applications had been withdrawn. MLR registration does not convert into FSMA authorisation, so registered firms must also apply.