The United Kingdom is moving closer to its most significant overhaul of crypto regulation to date, with the Financial Conduct Authority set to open a mandatory licensing gateway for crypto firms in September 2026. The gateway will determine which companies are allowed to operate under the UK’s future crypto regime and which will be forced to exit, scale back, or fundamentally restructure their business.
According to the Financial Conduct Authority, the gateway will act as a controlled entry point into the new framework for regulated cryptoasset activities under the Financial Services and Markets Act. Firms that want to continue serving UK customers once the regime goes live in October 2027 will need to apply for full authorisation during this window.
For many in the industry, this marks the end of the UK’s transitional phase, where crypto businesses could operate under a lighter anti-money-laundering registration while broader policy was still being designed.
From registration to authorisation
At present, many crypto firms in the United Kingdom are registered only for AML purposes, or operate under permissions linked to payments or e-money services. Others rely on third-party authorised firms to approve their financial promotions.
The FCA has made clear that none of these arrangements will automatically carry over into the new regime. Every firm carrying out regulated cryptoasset activities will need to seek direct FCA authorisation or, for already authorised firms, apply to vary their permissions.
This is a material shift. FCA authorisation involves scrutiny of governance, capital, risk management, safeguarding, operational resilience, and consumer protection. It is closer in spirit to the regulatory treatment of traditional financial institutions than to the crypto-specific regimes many firms are used to.
How the gateway will work
The application window is expected to open in September 2026 and must remain open for at least 28 days. Firms that submit a complete application during this period will have their cases prioritised, with the FCA aiming to reach decisions before the regime formally starts on 25 October 2027.
Crucially, draft legislation includes so-called saving provisions. These allow firms that applied on time to continue operating even if their application has not yet been decided when the regime begins, including during any appeal process.
Firms that miss the gateway window can still apply later, but they will not benefit from the same transitional protections. If they are not authorised by the start date, they will be restricted from carrying out new regulated crypto activities in the UK and may only be permitted to service existing contracts.
Why this matters
For policymakers, the gateway is designed to avoid a last-minute rush that overwhelms supervisors and creates legal uncertainty. For firms, it is effectively a pass-fail moment.
The FCA has already signalled that standards will be high, and that not all existing crypto businesses should assume they will qualify. In that sense, the gateway is likely to reshape the UK crypto market, favouring firms with stronger compliance, clearer business models, and a long-term commitment to operating as regulated financial entities.
The regulator plans to support preparation through information sessions and its Pre-Application Support Service, though it has stressed that early engagement does not guarantee approval.
As the UK positions itself between the EU’s MiCA framework and more fragmented global approaches, the crypto gateway offers a clear signal. Crypto firms are no longer operating in a regulatory holding pattern. From September 2026, the path forward becomes narrower, more formal, and significantly more consequential.
Related: FCA Sets Out Full UK Crypto Rulebook With Sweeping New Consultation Package