UK opens crypto licensing: firms have 151 days to apply, and current registration does not carry over

Britain's Financial Conduct Authority began accepting applications from crypto firms on Wednesday. It is the first step toward bringing exchanges, custodians and other crypto businesses under full financial regulation in the UK. In its announcement, the FCA said firms that want to keep operating in the UK should apply by February 28, 2027. The new regime comes into force on October 25, 2027.

The rules cover consumer protection, safekeeping of customer assets, market integrity and financial resilience. The FCA published its final rules in June. "Firms can now apply for authorisation and start preparing for regulation," said Dominic Cashman, the FCA's director of authorisation.

The timeline in days

The FCA says it expects to decide on applications filed in the window before the regime starts. That gives it 239 days after the deadline to work through them.

What the headline gets wrong: registered is not authorised

CoinDesk noted that more than 60 companies already hold FCA registration under the current regime, which focuses mainly on anti-money-laundering checks, and suggested those firms may have much of the work done. The FCA's own wording is stricter. "Authorisation is not automatic," it said. Firms that cannot meet the standards "will not be authorised" and cannot keep offering regulated crypto services in the UK. An existing registration is a head start, not a licence.

The detail that matters most for customers is the protection during the transition. Existing firms that apply within the window can keep serving customers, including taking on new business, while the FCA reviews their application. The FCA release promises that protection only to firms that apply during the application period. Missing February 28 is the date that carries real risk for a firm operating in the UK.

Why U.S. traders should care

The UK now has a fixed date. The United States does not. On the same day, the White House's regulatory review list showed the CFTC's crypto market rule, "Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets," still at the prerule stage, meaning it has not even been formally proposed. It has been at OMB since September 17. We covered why that stage matters after the Clarity Act stalled in Congress. The same list shows the CFTC's new prediction-market rules.

For a trader using a U.S. platform with UK operations, nothing changes today. The date to watch is February 28. Current prices are on our crypto prices page.

Sources: Financial Conduct Authority; CoinDesk; OMB regulatory review list. This is market information, not investment or legal advice.