UK FCA Issues Final Crypto Authorization Guidance for 2027 Regime

The UK Financial Conduct Authority has published final guidance for a new crypto regulatory regime, requiring firms to apply for authorization under rules that take effect on October 25, 2027. The guidance, released on September 16, clarifies which crypto activities will fall within the regulatory perimeter, including issuing stablecoins, operating trading platforms, dealing in digital assets, safeguarding cryptoassets, and arranging staking services. A critical point for existing firms is that current FCA registrations and permissions will not automatically convert to authorization under the new framework. Companies registered under the UK's anti-money laundering rules must also complete the new authorization process. David Geale, the FCA's executive director of consumers, payments and competition, said the guidance provides the clarity firms need to prepare. Applications for authorization open on September 30, 2026, giving firms over a year to prepare. However, companies seeking access to transitional arrangements face an earlier deadline of February 28, 2027. Missing this date could mean losing access to those provisions when the new regime begins.