The UK's Financial Conduct Authority has opened applications for cryptocurrency firms to become authorized, establishing full regulatory oversight of the sector for the first time.
In a Wednesday announcement, the FCA said companies can apply to gain clarity and legitimacy under the new framework. Firms seeking authorization will need to demonstrate compliance with requirements covering consumer protection, customer-asset safeguarding, market integrity, and financial resilience.
The move follows the FCA's finalization of its regulatory framework for cryptoassets in June, with the regime set to take effect in October 2027. The UK is also drafting comprehensive crypto legislation that recognizes bitcoin and other digital assets as property, a classification that emerged from a 2023 Law Commission recommendation.
Regulatory Context
The UK's regulatory push comes as other major jurisdictions advance their own frameworks. The European Union's Markets in Crypto-Assets regulation has applied to service providers since December 30, 2024. In the United States, President Donald Trump signed the GENIUS Act into law in July 2025, establishing a federal framework for dollar-backed tokens.
"The UK's new crypto regime will give consumers greater protections and firms a clear framework to operate in," said Dominic Cashman, director of authorisation at the FCA. "Firms can now apply for authorisation and start preparing for regulation."
