Find out about how the gateway for firms that want to undertake the new cryptoasset regulated activities will operate.
Firms wishing to undertake any of the new cryptoasset regulated activities will need to be authorised by us under the Financial Services and Markets Act 2000[2] (FSMA) with permission to undertake those activities at the point the new regime commences.
This will include firms that are registered with us under the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017[3] (MLRs) and/or firms that are registered with or authorised by us under The Payment Services Regulations 2017[4] or The Electronic Money Regulations 2011[5].
In particular, firms that are registered with us under the MLRs should note that there will be no automatic conversion and that they will need to secure authorisation by us under FSMA prior to the commencement of the new regime.
Firms that are already authorised under FSMA by us to undertake other regulated activities will need to have varied their existing permissions before the commencement of the new regime.
In addition, cryptoasset firms that are currently using the services of another FCA-authorised firm to approve their financial promotions (referred to as a s.21 approver[6]) will no longer be able to do this and will need to be authorised by us if they wish to continue to market to UK customers.
Information sessions
It is our intention to run a series of information sessions for cryptoasset firms who may be in scope of the new regime. These sessions will provide an opportunity for firms and their advisors to understand more about the new regime, our standards and expectations and how the authorisation process will work.
These sessions will be of interest to cryptoasset firms that are registered with us under the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) and/or firms that are registered with or authorised by us under The Payment Services Regulations 2017 or The Electronic Money Regulations 2011.
They will also be of interest to firms that are already authorised under FSMA and will need to vary their existing permissions, and firms that are not currently registered with or authorised by us but may be subject to the new regime.
Register your interest[7] in attending information sessions.
Pre-application support service
Firms can request a pre-application meeting with us via our pre-application support service[8] (PASS). A pre-application meeting, which is optional and free of charge, offers an opportunity for firms to introduce and explain their business model, discuss the authorisation process and understand our expectations. It helps to prepare high-quality applications and often facilitates faster assessments and decisions.
However, applicants should note that we do not provide advice to firms and pre-application meetings do not guarantee a successful application.
Applicants should also consider seeking independent legal/compliance advice as part of preparing an application.
Application period
Part 7 of the Treasury’s draft Statutory Instrument[9] allows us to set a period ahead of the commencement of the new regime during which firms can submit applications for authorisation (or a variation of permission application in the case of firms already authorised under FSMA).
The relevant application period (which we refer to as the ‘application period’) must be at least 28 days long and must close at least 28 days prior to the commencement of the new regime.
We expect the application period will open in September 2026. We will confirm this in due course via a direction published on our website[10].
Cryptoasset firms that apply during the application period
Where a firm applies for authorisation (or variation) during the application period, we will expect to determine its application before the new regime commences.
However, if this is not the case, the Treasury’s draft Statutory Instrument[9] includes a saving provision that will allow the firm to continue to provide cryptoasset services until its application has been finally determined. This also includes the case where a firm has referred our decision to refuse[11] its application to the Upper Tribunal[12], but the Tribunal has not made a final decision. Under these circumstances, the Treasury’s draft Statutory Instrument[11] also includes a provision that would allow us, under certain circumstances, to direct that a firm enters the transitional provision (see below) rather than the saving provision.
Under these circumstances, if the Tribunal agrees with our decision to refuse the firm’s application, the firm will enter the transitional provision[12] in order to exit the UK market in an orderly manner. If the Tribunal disagrees with our decision to refuse the firm, it can overturn our decision, vary our decision or remit it back to us with directions to reconsider.
Cryptoasset firms will be required to notify us that they are using the saving provision as soon as reasonably practicable after the full commencement date. Cryptoasset firms will also be required to notify us when they are no longer using the saving provision. We will set out in due course, via a direction published on our website, how these notifications are to be made
Cryptoasset firms that do not apply during the application period
While we will expect firms to submit their applications for authorisation (or variation) during the application period, firms can submit an application for authorisation (or variation) outside of the application period.
However, in doing so firms should be aware that we will not expedite its assessment of a firm's application to compensate for its late submission (ie after the application period has closed).
Firms should also be aware that if they apply outside of the application period (but before the commencement of the full regime) and are not authorised with the required permissions before that date, they will at the point the new regime goes live, enter the transitional provision[15] (by operation of law) while their application is determined.
While in the transitional provision, firms will be required to adhere to its requirements and will be unable to conduct new UK regulated cryptoasset activities until authorised. Firms will, however, be able to continue to perform pre-existing contracts.
