New UK Cryptoasset Regime: Practical Actions For Firms' Forward Planning

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Why forward planning matters: quick read

The UK is introducing a new financial services regulatory regime for cryptoassets, which will take effect on 25 October 2027. The FCA has confirmed that the authorisation gateway under the Financial Services and Markets Act 2000 (FSMA authorisation gateway) will open for cryptoasset firms on 30 September 2026 and close on 28 February 2027.

This timeframe leaves firms with a clear window for submitting their authorisation or variation of permission applications and getting ready for the new regime.

In our previous blog post, we considered the information shared by the FCA with firms earlier this year about the cryptoassets authorisations process and what this means for firms' preparations.

Developments since then include the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (Cryptoassets Regulations) being made, several FCA cryptoasset consultations closing to responses, and the FCA continuing to engage with firms, including through new webpages and webinars. Most recently, the FCA’s work programme for 2026/27 prioritises launching and processing applications for firms seeking to undertake regulated cryptoasset activities.

The FCA’s consistent message to firms is clear: start planning early.

To help you navigate the transition to the new regulatory regime, we summarise in this blog post the current policy position and outline practical steps for firms to prepare.

Cryptoasset Regulations

The Cryptoasset Regulations were made on 4 February 2026, establishing the UK’s framework for regulating cryptoassets. They come into force fully on 25 October 2027, with an initial earlier commencement date of 26 February 2026 to allow the FCA to make rules, issue guidance, and begin preparatory work, including determining authorisation and variation of permission applications.

Status of FCA consultations

All FCA cryptoasset consultation papers published so far have now closed. The FCA will issue final rules and guidance in policy statements during 2026, ahead of the regime’s implementation. It has not provided any specific publication dates, so firms will need to look out for these publications, as well as any further policy developments, over the coming months.

Cryptoasset financial promotions: use of s.21 approvers

A new FCA webpage provides information for cryptoasset firms that are not authorised under FSMA or registered under the Money Laundering Regulations 2017 (MLRs), and currently rely on authorised firms to approve cryptoasset financial promotions (s.21 approvers) and communicate to UK customers. In summary:

Timing of authorisation or variation of permission application	Position of firm
While the FSMA authorisation gateway is open	The firm can continue to use a s.21 approver until FCA determines the application.
After the FSMA authorisation gateway has closed	The firm can continue to use a s.21 approver until the regime goes live. After this date, if the FCA has not determined the application, the firm will enter the transitional provision and only be permitted to communicate promotions necessary for the performance of a pre-existing contract (for which a s.21 approver will not be required).
After the cryptoasset regime has commenced	The firm must wind down its UK cryptoasset business.

The FCA reminds cryptoasset firms that where they are authorised under FSMA, they can communicate their own financial promotions without needing a separate s.21 approver. There is also an exemption enabling authorised firms to approve a financial promotion from an unauthorised entity within the same corporate group without holding s.21 approver status.

MLRs: registration before the new cryptoasset regime goes live

Following an AML-focused webinar hosted by the FCA's Payments and Digital Assets Authorisations team on 18 March 2026, the FCA published a new webpage clarifying its approach to cryptoasset firms' applications to register under the MLRs. In summary:

Timing of registration application	Position of firm
Before the FSMA authorisation gateway opens	The FCA will assess the application in the usual way. If it has not been determined by this date, the firm must decide whether to apply for authorisation under FSMA. If so, the FCA will determine the two applications separately, even if they are assessed concurrently.
After the FSMA authorisation gateway has opened	The FCA will encourage the firm to focus on securing authorisation under FSMA, rather than applying for registration. Firms that still wish to apply for registration will need to explain their plans and why they need registration.
After 31 July 2027	The firm should not apply for registration because the FCA is unlikely to be able to determine their application (within the three-month statutory deadline) before the new regime commences.

Practical actions for firms

Firms need to prepare to be ready and in a position to operate under the new cryptoasset regime from Day One. Practical actions to consider taking now include:

Engage with the financial services legislative regime (e.g. the Cryptoasset Regulations, FSMA and the Regulated Activities Order (RAO)) to understand which of your existing and planned activities will be regulated.
Review FCA consultations, website resources and the FCA Handbook to anticipate the final cryptoasset rules and guidance, and become familiar with the wider regulatory landscape.
Assess your business models and compliance strategies, including in relation to conduct, prudential, governance, systems and controls, and market abuse and financial crime requirements.
Start to prepare your authorisation (or variation of permission) application and allow sufficient time for this. The FCA’s optional pre-application support service (PASS) will be available from July 2026, before the FSMA authorisation gateway opens, and the FCA is currently seeking input from firms to help shape the design of the cryptoassets application form.
Attend FCA webinars. Upcoming sessions hosted by the FCA's Payments and Digital Assets Authorisations team will provide introductions to the Senior Managers and Certification Regime (SMCR), and operational resilience. Details are on the FCA website.

Our team is well-positioned to support you with your planning, offering extensive expertise in digital assets and the FCA authorisation process. We can help you navigate regulatory expectations, refine your compliance approach, and guide you through the authorisation process.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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