The United Kingdom's Financial Conduct Authority has released guidance to help cryptocurrency firms prepare for a new regulatory framework set to begin in 2027. Firms offering crypto asset services will need authorization under upcoming regulations. The move aims to protect consumers and build trust in the sector.
The Financial Conduct Authority (FCA), the UK's financial regulator, published detailed information on January 8, 2026, to assist firms planning to offer crypto asset-related services once the new regime takes effect in 2027. This regime, governed by the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025, requires authorization for any new crypto asset regulated activities starting from the regime's commencement, likely in October 2027.
The guidance outlines key areas, including regulated activities, standards for firms and individuals, the FCA's approach to authorization, supervision, and enforcement, as well as a gateway process for applicants. It also proposes transitional provisions allowing existing crypto firms that fail to secure authorization to orderly wind down their UK operations.
"Firms wishing to undertake any of the new crypto asset regulated activities will need to be authorized by us under FSMA with permission to undertake those activities at the point the new regime commences," the FCA stated in its announcement.
The regulator plans to issue further policy consultations in the coming months, with final rules and guidance to follow in policy statements before implementation. In September 2025, the FCA proposed rules to promote good business practices, enhance operational resilience, combat crime, and protect consumers—many of which mirror standards for traditional financial firms. Final rules are expected in 2026.
This preparation follows positive industry developments, such as the FCA's August 2025 decision to lift its ban on crypto exchange-traded products for retail investors, which industry members hailed as a potential "seismic shift" in digital asset adoption, akin to the 1986 "Big Bang" deregulations.
Applications for the new licensing regime will begin in September 2026, and registered crypto companies must reapply for approval under the updated framework.
