UK Sets Timeline for New Cryptocurrency Licensing Regime

According to PANews, the UK Financial Conduct Authority (FCA) has outlined a timeline for the implementation of a new cryptocurrency licensing regime. Starting this fall, crypto asset service providers (CASPs) can apply to enter the UK market, with the application period expected to commence in September 2026. The FCA will confirm the exact timeline in due course, and a limited application window will be available before the new system takes effect on October 25, 2027. Under the plan, companies offering regulated crypto asset services in the UK, including those currently registered under anti-money laundering regulations and payment-related frameworks, will need authorization under the Financial Services and Markets Act (FSMA). Firms already authorized by the FCA for other regulated activities must amend their existing permissions before the new regime is implemented. Crypto companies relying on other authorized firms to approve financial promotions will need direct FCA authorization to market their products in the UK. The FCA requires crypto asset service companies to apply within a fixed window, lasting at least 28 days and ending no later than 28 days before the new regime begins. Applications submitted during this period are expected to be decided before the new system is in place. The legislative draft includes 'transitional provisions,' allowing companies to continue operations during the application assessment period. Companies that miss the application window or are not authorized by the time the new regime starts can operate existing products under transitional rules but are restricted from launching new products. Late applicants can still apply, but the FCA warns that the evaluation process may take longer.