UK FCA Crypto Regulation New Rules Countdown: Apply Within 9 Months or Be Restricted

The UK Financial Conduct Authority (FCA) officially launches a new round of regulation for the cryptocurrency industry. According to the latest announcement, the FCA will open the licensing application channel for crypto asset service providers in September 2026. All companies providing regulated crypto services in the UK must complete authorization before the new regulations take effect in October 2027. This means that UK crypto companies are now entering the “regulatory countdown” phase.

Regulatory Timeline and Core Requirements

The key milestones for FCA regulation are as follows:

Key rules for application requirements

According to the news, FCA’s authorization requirements include several important details:

• All companies must obtain full authorization under the Financial Services and Markets Act
• Entities registered under anti-money laundering regulations will not automatically transfer their status and must re-apply for authorization
• Companies that fail to apply on time will face transitional restrictions after the new regulations come into effect, allowing only to continue offering existing products and prohibiting new business launches

This means that UK crypto companies cannot rely on old AML registration and must re-apply under new standards.

Practical Significance of the Policy

Impact on the UK crypto industry

This is not just a procedural change but a significant upgrade in UK crypto regulation. Previously, UK crypto companies mainly registered under AML regulations, but this time FCA demands more stringent full authorization. This implies:

UK crypto companies need to reassess their compliance capabilities and costs. According to related information, market makers like GSR Markets have already obtained FCA licenses, demonstrating that such high standards of authorization are achievable, but require a more comprehensive compliance system.

Signal to the European crypto ecosystem

Although the UK has left the EU, its financial regulation remains a global reference. FCA’s actions indicate that major European financial markets are pushing for the formalization and licensing of cryptocurrencies. This aligns with the EU’s MiCA (Markets in Crypto-Assets Regulation), signaling that major markets worldwide are tightening crypto regulatory standards.

Market Reactions

Rising compliance costs

Stricter authorization requirements mean increased compliance costs for UK crypto companies. Small firms may be unable to bear these costs and could exit the market or seek mergers and acquisitions, which will promote industry consolidation.

Accelerated industry consolidation

Observations suggest that such policies typically lead to industry consolidation. Larger, well-capitalized crypto firms will find it easier to meet new licensing requirements, while small and medium-sized companies may face pressure. It is expected that the number of participants in the UK crypto market will decrease, but overall compliance levels will improve.

User protection

From another perspective, stricter licensing benefits users. Related reports mention recent scams impersonating FCA endorsements; a genuine FCA licensing system can effectively distinguish legitimate players from illegal ones, reducing the risk of users being scammed.

Summary

The FCA’s new regulation marks an important step toward the normalization of the industry. The application channel will open in nine months, providing ample preparation time for the market. For UK crypto companies, this is both a challenge and an opportunity: those with strong compliance capabilities will gain higher market trust and competitiveness, while non-compliant firms face the risk of elimination. This regulatory test will ultimately reshape the landscape of the UK crypto market.