UK crypto gateway limits new deals for some firms from Oct 2027

The Financial Conduct Authority opened an authorization gateway for the UK’s new crypto regime on Sept. 30, 2026. The full regulatory framework takes effect on Oct. 25, 2027. Firms that submit qualifying applications by Feb. 28, 2027 are eligible for a temporary saving provision while the FCA reaches a decision.

The saving provision allows covered activities listed in a timely application to continue if the application remains undecided at the regime’s start. The protection applies only to the specific activities named in the application and expires two years after Oct. 25, 2027.

Firms that file after Feb. 28 but before Oct. 25 and remain undecided at commencement enter a separate transitional regime. Those firms may carry out only the actions necessary to perform contracts entered before they entered transition. They may not enter into new UK contracts with existing customers or with new UK customers. Simply holding an account does not allow firms to make new deals. Transitional run-off arrangements also end after a maximum of two years, and firms must notify the FCA and affected contract parties about the restrictions.

The FCA can require a firm to move into a restricted run-off where necessary for criminal enforcement, consumer protection, or to meet the regulator’s statutory objectives. The saving provision can cover a refusal decision that remains subject to review, but filing an application does not guarantee eventual authorization. An application rejected for lacking required information will count as no application unless a valid submission follows.

The regime covers activities commonly offered by digital asset firms, including trading platforms, dealing and arranging transactions, and custody services. Overseas providers serving UK customers may fall within the scope, subject to territorial rules and specified intermediary and custody exceptions. Existing anti-money-laundering registration will not automatically convert into authorization under the new regime, and firms already authorised under the Financial Services and Markets Act must vary permissions if they intend to carry out the newly regulated crypto activities.

Firms in transition must provide clear notices to customers explaining the absence of full authorization and whether protections for assets, dispute resolution mechanisms, or compensation arrangements have changed. Firms that do not apply before the regime starts must complete any required UK run-off arrangements before Oct. 25, 2027.