UK FCA introduces a new crypto asset licensing regime starting October 2027—companies' transition period begins

In early January, the UK financial regulatory authorities officially announced a new licensing system for cryptocurrency companies. This signifies a major change in the regulatory framework of the cryptocurrency market. The UK Financial Conduct Authority (FCA) plans to implement a comprehensive license system for Crypto Asset Service Providers (CASPs) on October 25, 2027, and has revealed that it will begin accepting applications from companies this fall as a preliminary step.

Basic Schedule of the FCA New System—Application Channels Open from September 2026

Under the new FCA system, the application period will start in September 2026. During this limited period before the implementation, companies can submit applications for official approval through a “dedicated application portal.” This schedule may be adjusted in the future.

Between the start of the application period and the implementation date of October 25, 2027, more companies will need to obtain approval from the FCA. Notably, it is mandatory to complete the application at least 28 days before the system comes into effect. Companies that apply by this deadline are expected to have their reviews completed before the new system is launched.

Different FCA Approval Requirements for Existing and New Entrant Companies—Response by Company Type

Currently, cryptocurrency companies registered under anti-money laundering regulations and payment-related frameworks are required to obtain approval under the FSMA (Financial Services and Markets Act).

For companies already holding approval from the FCA for other regulated activities, it is essential to modify or add to their existing approvals before the new system takes effect. Furthermore, cryptocurrency companies that rely on other approved entities for financial promotion activities must obtain direct approval from the FCA for product advertising in the UK. In other words, the specific requirements vary depending on the company’s business scope and current approval status.

Relief Measures for Companies That Miss the Application Deadline—Transition Provisions Provide Grace Period Until Approval

The bill includes an important relief measure called the “transition provisions.” Even if companies miss the September 2026 application deadline or fail to obtain approval by the October 25, 2027, effective date, they can continue their existing operations.

However, companies subject to these transition provisions face restrictions. They will be limited to operating existing products and services, with no new offerings permitted. While late applications can still be submitted, the FCA warns that review times may be longer than usual.

In summary, the period from the start of applications in September 2026 until the system’s implementation on October 25, 2027, constitutes a transition phase for companies to migrate to the new FCA approval framework. Completing compliance within this window is crucial for business continuity and service expansion.