UK Crypto Firms Face New Authorization Deadline: Existing Registrations Won’t Suffice

As applications for authorization under the UK’s new crypto regulations open, it has been announced that existing registrations will not automatically transfer to the new system and that companies must apply by February 28, 2027.

According to an FCA statement reported by The Block, crypto companies wishing to continue operating in the country can apply under the new authorization process. The regulations published in June are scheduled to take effect on October 25, 2027. With the application period now open, companies have moved from preparation to implementation.

Existing registration will not become a new authorization

Registration under the Money Laundering Regulations will not automatically grant FCA authorization under the new regime. These companies will also need to submit a new application and demonstrate that they meet the necessary requirements.

The FCA will assess consumer protection, the security of customer assets, market integrity, and companies’ financial resilience. Authorization will depend on the outcome of an assessment against these criteria.

Services can continue while applications are reviewed

Companies that apply within the specified period may continue offering covered crypto services and accepting new business while their applications are reviewed, provided they meet the relevant transitional conditions. This creates a conditional transition pathway for continued operations during the review period.

The new regime covers areas such as crypto trading, transaction services, staking, and digital asset custody. The admission of crypto assets to trading lists, disclosure requirements, market abuse, and financial adequacy are also among the regulated areas.

Emma Banymandhub, CEO of payments industry organization The Payments Association, said that companies already registered should also treat the process as a new authorization application. Banymandhub emphasized the importance of proportional implementation, particularly for small and growing companies.