UK Crypto Firms Face Five-Month Deadline for FCA Authorisation

Existing anti-money-laundering registrations will not automatically convert into the new permissions required under the 2027 framework. Companies ranging from trading platforms and custodians to stablecoin issuers must file fresh applications if their activities fall within the expanded scope of the FCA’s financial-services rulebook. Firms that submit their paperwork within the specified window may continue providing services under transitional provisions while the regulator processes their files. Those failing to meet the February deadline risk being forced to suspend relevant activities until final authorisation is granted.

Industry leaders suggest that the formalization of these rules could lower barriers for traditional financial institutions. Zumo CEO Nick Jones noted that clear regulatory requirements help mitigate the uncertainty that previously discouraged established players from entering the digital asset space. While the FCA has already introduced a pre-application support service to assist firms, the burden of compliance remains significant. Applicants must demonstrate that their internal governance, financial controls, and risk management meet rigorous, activity-specific standards, marking a transition toward more structured operations in the UK crypto sector.