UK FCA finalizes crypto licensing framework effective 2027

The United Kingdom's Financial Conduct Authority has finalized a comprehensive regulatory framework for cryptoassets, establishing a mandatory licensing regime that will take full effect on October 25, 2027. The landmark rules, announced on Tuesday, June 30, 2026, will bring crypto trading platforms, custodians, stablecoin issuers, and other digital asset businesses under formal oversight comparable to traditional financial services.

Under the new framework, firms must apply for FCA authorization between September 30, 2026, and February 28, 2027. Existing registrations under the UK's anti-money laundering regulations will not automatically convert, meaning all firms must submit new applications. The FCA will offer pre-application support meetings starting in July 2026.

The finalized rules introduce several key requirements. Crypto firms will face prudential standards, including capital requirements and annual stress tests to demonstrate resilience against market shocks. For trading platforms, eligible cryptoassets will be subject to a single 40% net risk position requirement. Stablecoin issuers secured a concession, with the FCA lowering the proposed capital coefficient from 2%...