The UK's Financial Conduct Authority opened its cryptoasset authorization gateway on September 30, 2026, launching a five-month application window that closes on February 28, 2027 and determines which platforms can keep serving British customers when the full regime begins on October 25, 2027.

The window governs access to a statutory saving provision, a temporary protection for pending applicants codified under regulation 53 of the UK statutory instrument 2026/102, rather than an immediate cutoff for crypto services. Platforms that file a qualifying application inside the window and remain undecided at commencement can continue the activities covered by their filing, including new business, the FCA said in its announcement.

What does the February 2027 deadline actually protect?

The protection is narrower than it first appears. A timely applicant whose authorization is still pending on October 25, 2027 keeps servicing existing customers and accepting new UK business only for the activities listed in its application. The saving expires two years after commencement, and submitting an application does not guarantee approval.

The FCA can also push a refused-but-under-review firm into a restricted run-off where necessary for criminal enforcement, consumer protection or its statutory objectives, under regulation 55 of the same instrument.

How do late applicants fare?

Firms that file after February 28, 2027 fall into a separate transitional track. A late applicant whose case is still open on October 25, 2027 may continue regulated activities only as needed to perform contracts entered into before the transition began. New contracts with both existing UK customers and prospective UK customers are prohibited. Holding an account does not, on its own, preserve access to new business.

A late applicant authorized before commencement escapes the pending-application restriction, but still faces a two-year cap on run-off operations. The FCA requires such firms to notify the regulator and existing contract counterparties, with customer communications explaining the loss of authorization and any material change to asset protection, dispute resolution or compensation arrangements.

Which activities fall in scope?

The relevant cryptoasset activities under the FCA's FSMA handbook include operating trading platforms, dealing and arranging transactions, and custody. Overseas firms serving UK consumers can fall within the territorial perimeter, though specific intermediary and custody exceptions apply under PERG 18.3 of the FCA handbook.

A firm with scoped business that does not apply before commencement must finish its UK run-off ahead of October 2027. An application rejected for missing minimum information is treated as no application unless a valid one follows.

Does existing AML registration carry over?

No. Registration under the existing anti-money-laundering regime does not convert automatically into authorization under the new framework. Firms already authorized under the Financial Services and Markets Act for other activities must vary their permissions if they intend to undertake the new crypto activities. An existing registration therefore does not determine whether a provider will hold the required permission, qualify for pending-application protection, or be confined to run-off when the regime takes effect.

What is the operational consequence for UK crypto firms?

The gateway creates a binary incentive: file by February 28, 2027 to preserve full pending-application status, or accept a constrained transitional track limited to pre-existing contracts. With the two-year saving cap expiring in October 2029, the real enforcement window for non-compliant or undecided firms begins at commencement and runs through the maximum run-off period. Platforms weighing whether to vary their FSMA permissions now have a defined five-month window to align their licensing footprint with the activities they intend to conduct under the 2027 regime.