The new UK cryptoasset regime is coming ...........

On 4 February 2026, The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 were made by the UK Parliament and will bring cryptoassets within the regulatory remit of the Financial Conduct Authority (FCA).

The new cryptoasset regime in UK is expected to come into force on 25 October 2027.  Firms wishing to undertake any of the new cryptoasset regulated activities will need to be authorised by the FCA under FSMA with permission to undertake those activities at the point the new regime commences.

There will be transitional provision for firms that are already providing cryptoasset services that will be covered by the new regime when it commences but have not sought or are unsuccessful in securing the necessary permission(s) to continue providing these services in or to the UK.

The application period for firms that want to undertake the new cryptoasset regulated activities will be opened from 30 September 2026 to 28 February 2027.  This period is vital for crypto businesses that are already registered with the FCA under the MLRs and/or firms that are registered or authorised by the FCA as Payment Institutions or Electronic-Money Institutions under PSR 2017 or EMR 2011 respectively.

The Firms that are already registered or authorised with the FCA under MLRs, PSR 2017 or EMR 2011 should note that there will be no automatic conversion and that they will need to secure authorisation under FSMA for this new cryptoasset regime.  Firms that are already authorised under FSMA by the FCA to undertake other regulated activities will need to vary their existing permissions.

Where a firm applies for authorisation (or variation) during the application period, the FCA will expect to determine its application before the new regime commences. However, if this is not the case, there is a saving provision (subject to certain circumstances and entering into a transitional provision) that will allow the firm to continue to provide cryptoasset services until its application has been finally determined.

For firms with existing UK business that would be in scope of the new regime that do not intend to apply for authorisation (or variation) or ultimately do not apply for authorisation (or variation) before the new regime commences, they must orderly run-off their UK cryptoasset business before the new regime commences.

If your firm planned to continue or add cryptoasset activities to your existing regulated permissions, you should start to map out what are required under the new cryptoasset regime and be ready to submit your VoP or full application for authorisation for those activities.

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