UK FCA Finalizes Crypto Authorization Criteria, to Start Applications on Sept. 30

The U.K. Financial Conduct Authority has published final guidance setting out authorization criteria for crypto-asset firms ahead of the rollout of a new regulatory regime.

Cointelegraph reported on Sept. 17 that the FCA issued guidance detailing when authorization is required for major crypto-asset activities, including stablecoin issuance, operation of crypto trading platforms, broking and arranging transactions, crypto custody and staking services. Firms that are already registered or licensed will not be automatically transferred into the new regime and must file separate applications.

David Geale, the FCA's executive director for payments and digital finance, said preparing for regulation begins with understanding how the new framework applies to a company's business. The guidance gives firms the clarity they have been asking for so they can prepare with confidence, he added.

The FCA will begin accepting authorization applications on Sept. 30. The new regulatory framework will take effect on Oct. 25, 2027. Firms seeking transitional arrangements must apply by Feb. 28, 2027.

The guidance comes as the U.K. moves to flesh out its digital-asset regulatory framework. Parliament passed legislation in February to bring crypto assets within the FCA's regulatory scope, and the FCA finalized a related package of rules and guidance in June. The House of Lords recently approved an amendment by a 194-138 vote requiring the Treasury to formulate a digital-asset strategy covering crypto assets, stablecoins, tokenized securities and digital financial infrastructure within 12 months of the law taking effect.

The FCA is also continuing work on tokenized assets. It is seeking feedback on whether some tokenized gold products should be exempt from U.K. fund rules and plans to publish a tokenization roadmap for wholesale financial markets later this year with the Bank of England.