UK to introduce new regulatory framework for crypto assets…even currently registered firms must seek reauthorisation

The UK financial regulator is introducing a new regulatory framework to bring crypto assets (cryptocurrencies) into the regulated mainstream.

According to CoinDesk, a crypto-asset industry publication, the Financial Conduct Authority (FCA) said in a notice on its website that firms seeking to provide crypto-asset-related services will be required to obtain authorisation under the new regime, which will take effect from October 2027.

As a result, crypto-asset firms currently registered under the Money Laundering Regulations (MLR) will also need to go through a reapplication process in line with the new system. The FCA said it plans to begin accepting authorisation applications for the new framework from September 2026.

The UK government is currently, led by HM Treasury, pursuing legislation to extend existing financial laws to the crypto-asset industry. The FCA’s move is also seen as part of that legislative push.

The FCA is currently publicly soliciting market feedback on the new framework.

The FCA said, “From the start date of the new regime, any firm seeking to undertake crypto-asset activities in the UK must have clear authorisation,” adding that “this will strengthen consumer protection and trust in the market.”