UK crypto firms now need a licence. The queue opens

From 30 September, crypto firms that want to serve people in the UK can start applying to the Financial Conduct Authority (FCA) for permission to operate under a new, much tougher regime. On 16 September the FCA published the guidance that tells them whether they need to. The rules themselves don't bite until 25 October 2027, but the queue forms now.

It's the least exciting thing to happen in crypto this month, and probably the most important for UK consumers.

Getting ready for regulation starts with understanding how the regime applies to your business.
— David Geale, executive director, FCA

Five things that will need a licence

The guidance, reported by Payment Expert and LeapRate, sets out the activities that will need full FCA authorisation. Firms will have to be authorised if they are:

• issuing qualifying stablecoins (tokens designed to hold a steady value, usually pegged to a currency like the pound)
• running a crypto trading platform
• dealing in crypto, or arranging deals for customers
• safeguarding crypto on someone else's behalf, known as custody
• arranging crypto staking, where holders lock up tokens in return for rewards

The application window runs from 30 September until 28 February 2027. The guidance covers crypto businesses, payment and e-money firms, traditional financial institutions, and overseas businesses serving UK customers.

Your old registration won't carry over

The key detail for firms is that existing registrations under the Money Laundering Regulations, which is how crypto businesses are currently allowed to operate here, won't automatically convert. According to Payment Expert, every firm has to work out whether it falls inside the new boundaries and apply separately.

The final rules, which the FCA published on 30 June, are a big step up. Firms will need to hold capital and run stress tests, follow rules against insider dealing and market manipulation, and meet the Consumer Duty, the same standard of care that applies to banks and insurers. Large, "systemic" stablecoin issuers will also be supervised by the Bank of England. Until October 2027, the FCA's oversight of crypto is limited mainly to anti-money laundering checks and rules on how crypto is advertised.

A regime for fewer, bigger holders

This lands in a market that is shrinking in one way and growing in another. The FCA's own consumer research, reported by CoinDesk, found the share of UK adults holding crypto fell from 12% in 2024 to 8% in 2025, or roughly 4.5 million people. Yet awareness sits at 91%, and those who still hold crypto hold more of it on average.

Here's Ada's take. For most people the practical effect won't be felt for a year, but the next few months will reveal a lot. Firms that apply are signalling they intend to stay and meet UK standards. Firms that don't may be quietly planning to leave the UK market. If you use a crypto app, it's worth checking over the coming months whether it has said publicly that it's applying. From October 2027, the FCA's register will be the place to confirm it's authorised.

The awkward timing

There's a wrinkle. The government has recently amended the legislation, adding exclusions for things like proprietary trading, market making, some technology providers and decentralised protocols. The FCA says it will consult in October on updated guidance to reflect those changes, with a final version expected in early 2027. It also says most crypto firms won't be affected.

The trade body CryptoUK has flagged the obvious problem, according to Payment Expert: some firms may apply before they know for certain whether they're in scope. Applying for a licence you might not need, or failing to apply for one you do, isn't a great choice to hand a business.

To be fair to the FCA

Opening the window more than a year before the rules take effect is generous by regulatory standards. It gives firms time to prepare and gives the FCA time to work through applications, rather than a last-minute scramble. The regulator has also run pre-application meetings since July. As Geale put it, the guidance "gives firms the clarity they've asked for so they can prepare with confidence." For an industry that has spent years complaining that UK rules were vague, it's hard to argue it hasn't got what it asked for.

Mind the hype. In crypto, the most interesting date this autumn isn't a halving or a token launch. It's a paperwork deadline.

Sources: Payment Expert, LeapRate, NewsCord, FCA, CoinDesk