Can UK crypto firms keep operating while they wait for FCA authorization?

Authority opened applications for the UK's new cryptoasset authorization regime at 7 a.m. UK time on Sept. 30, 2026. Firms planning to continue regulated crypto activities in the UK should submit during the main window, which runs through Feb. 28, 2027. The regime's rules take effect on Oct. 25, 2027.

What filing during the window means

A valid application submitted during the main window gives eligible existing businesses a temporary position: they may continue providing specified cryptoasset services and take on new UK customers while the FCA assesses their application. The FCA expects to determine applications submitted during the window before the regime takes effect, but a submission is not the same as authorization. Each applicant still must satisfy the FCA's authorization standards before receiving permission.

If a firm's application is unresolved when the new rules start, timing matters. Firms that filed in the main window keep broader operating rights while under assessment. Firms that file after Feb. 28, 2027 cannot rely on the same saving provisions and will generally only be able to service contracts that existed before entering transition, rather than onboarding new UK business.

MLR registration and existing permissions

Registration under the current Money Laundering Regulations is focused on anti‑money‑laundering obligations and will not automatically convert into authorization under the Financial Services and Markets Act framework. Existing firms must undergo the FCA's new authorization process. Firms already authorized under FSMA that intend to offer crypto activities covered by the new rules may need a variation of permission to lawfully provide those services.

Scope of the regime and requirements

Applicants will face a full authorization assessment. The FCA has stressed that incomplete submissions do not secure the same position as a valid, complete application made during the designated period. Firms should prepare to demonstrate they meet consumer protection, customer asset safeguarding, market integrity, and financial resilience requirements.

• Review the FCA final perimeter guidance to identify which activities fall within the new authorization requirements.
• Prepare a complete application and supporting materials before Feb. 28, 2027 if the firm intends to rely on the broader transitional treatment.

The window opens an opportunity to secure a transitional position, but firms must treat filing as the start of a full authorization process, not as provisional approval.