UK crypto firms have been given a five-month window, running from Sep. 30 through Feb. 28, to apply for Financial Conduct Authority approval ahead of a new regulatory framework expected to come into force in October 2027.
The Financial Times published a letter from Zumo founder and CEO Nick Jones, who said the application window provides firms with a pathway into the UK market, which some financial institutions had previously viewed as “too difficult.” He argued that regulatory uncertainty and risks linked to business partners had discouraged institutions, even when they understood digital assets and wanted to offer related products.
The FCA’s published timetable sets clear dates for the next stage: applications will open on Sep. 30, 2026, close on Feb. 28, 2027, and the new regime is expected to take effect on Oct. 25, 2027. The regulator also launched a pre-application support service in July to help firms prepare before submitting their applications.
UK Crypto Firms Required to Apply for New Permissions
Under the incoming rules, firms conducting regulated crypto activities will need authorization from the FCA or an amendment to their existing permissions. The FCA says its current crypto oversight has mainly covered anti-money-laundering registration and financial promotions, while the 2027 framework will bring additional activities under its financial-services rules.
According to the FCA’s final policy statements, existing registrations will not automatically become permissions under the new framework. Firms already registered under money-laundering rules, along with companies authorized for other financial services, will need to apply if their crypto activities fall under the new requirements. As previously reported, the rules cover businesses including trading platforms, custodians, stablecoin issuers, and firms providing certain staking services.
Filing within the five-month window can also determine whether an existing business may continue operating while its application is reviewed. The FCA says firms that submit applications on time may continue certain activities under transitional provisions, provided they meet the required conditions. Firms that apply after Feb. 28, 2027, cannot use those provisions and may need to halt the relevant activities until approval is granted. Submitting an application does not itself provide permission, and the regulator has not promised to decide every timely application before the new regime takes effect.
The rules establish requirements covering firms’ finances, governance, and conduct, along with standards tailored to specific activities. The FCA’s June policy statements cover areas such as stablecoin issuance, crypto custody, disclosures for assets offered or admitted to trading, and measures to prevent market abuse. Applicants can therefore review the requirements for the services they intend to provide instead of viewing authorization as a single approval covering every crypto product.
Financial Firms Expand Crypto Access Through ETNs
Jones cited Hargreaves Lansdown as an example of a traditional investment platform moving into the crypto market. The company began offering nine Bitcoin and Ether exchange-traded notes to eligible clients on Sep. 3, as reported by . The notes provide investors with exposure to the assets’ prices, while customers do not purchase the coins directly or hold their private keys.
Access is restricted to clients using the platform’s Advanced Investing service. Based on Hargreaves Lansdown’s product details reported , customers must self-certify as advanced investors, complete a risk assessment on the products, and observe a 24-hour cooling-off period. The launch came after the FCA allowed UK retail investors to purchase qualifying crypto ETNs from October 2025.
Hargreaves Lansdown’s ETN offering and the upcoming authorization process cover different areas of the market. The ETNs are listed investment products already permitted under FCA rules, while the new application window is intended for firms seeking approval to conduct activities covered by the 2027 crypto framework. In his FT letter, Jones connected the two as evidence that, in his view, established financial companies are becoming more open to developing crypto services in the UK.
The FCA has also explored another pathway for investment funds seeking crypto exposure. In June, it proposed a 10% cap on crypto ETN holdings for certain authorized funds, while stating that direct crypto ownership by those funds was not under consideration at the time. The proposal remained separate from existing rules that allow eligible retail customers to purchase ETNs through investment platforms.
Offshore Exchanges Face FCA Decision on UK Applications
For overseas businesses serving UK customers, the authorization window creates a separate decision over whether to apply for permission to provide covered services. In August, reported that Binance planned to seek an FCA license, citing a Telegraph report. Binance had not publicly confirmed any filing, while existing restrictions on Binance Markets Limited remained in effect.
Jones argued in his FT letter that more companies will need compliant local partners and operational systems as they prepare for UK regulations. He said the industry is likely to move away from offshore services and loosely structured business models. However, these remain Jones’s expectations rather than an FCA finding that offshore firms have already changed their operating practices.
The US is taking a different approach to the regulatory issue. On Aug. 18, the Securities and Exchange Commission proposed rules covering certain investment contracts tied to crypto assets, including exemptions from securities registration. The proposal is still open for public comment and does not affect the FCA requirements that apply to firms conducting regulated activities in the UK.
