Crypto firms must apply to the UK's Financial Conduct Authority by Feb. 28, 2027 to keep serving UK customers when the regulator's new cryptoasset regime takes effect on Oct. 25, 2027.

The FCA opened its authorization gateway on Sept. 30, 2026, with the regulator stating that "existing firms that apply by Feb. 28, 2027 can keep taking new business if their applications are still pending when the regime starts on Oct. 25." The filing window gives incumbent operators a path to continue operating through the regulator's transition.

What the Feb. 28, 2027 deadline delivers

Firms that meet the window preserve a key operational right: the ability to keep onboarding UK customers while the regulator reviews their submissions. The FCA expects to determine applications filed within the window before the regime launches. For decisions still outstanding at launch, a statutory saving provision lets those firms continue providing services, including new business.

Late applicants face a narrower runway. Submissions between Feb. 28 and Oct. 25, 2027 can proceed, but unauthorized firms at launch may only perform activities necessary to fulfill pre-existing contracts. They cannot enter new contracts with existing or new UK customers in that transitional state.

Firms that do not apply before Oct. 25, 2027 must wind down their in-scope UK crypto business before the regime begins. Exceptions apply for statutory protections extending saving or transitional relief to overseas group entities through another member's application.

The FCA treats a submission rejected for lacking minimum information as not constituting an application unless the firm later submits a valid one.

Eligible firms whose applications are refused or withdrawn can use a separate transitional wind-down provision. It restricts activity to the performance of pre-existing contracts, bars new UK contracts, and lasts no longer than two years from the regime's start.

Existing anti-money laundering registrations will not automatically convert into authorization, and firms already authorized for other financial activities must obtain the additional crypto permissions they need before Oct. 25, 2027.

Which activities require FCA permission?

The FCA's perimeter guidance in PS26/18 identifies five in-scope activities when carried on as a business in the UK, subject to statutory definitions, exclusions and exemptions:

• Operating a qualifying cryptoasset trading platform.
• Safeguarding qualifying cryptoassets and relevant specified investment cryptoassets, or arranging that safeguarding.
• Dealing in qualifying cryptoassets as principal or agent, and arranging deals.
• Arranging qualifying cryptoasset staking.
• Issuing qualifying stablecoins in the UK.

Crypto lending and borrowing can fall within the dealing or arranging activities. The guidance extends scope to overseas trading, custody and staking businesses serving UK retail customers, with exceptions for dealings through an authorized trading platform or principal dealer, and for overseas custody or staking performed at an appropriately authorized firm's direction.

Why stablecoins face two permission tests

Issuing a qualifying stablecoin and distributing it are treated as separate regulatory questions in PS26/18. The FCA separates the issuance activity—offering, redemption and maintaining value with the required UK connection—from dealing and arranging.

The issuance activity carries a dealing and arranging exclusion. An overseas issuer or third-party redemption agent outside that activity may still need permission. Direct sales to UK consumers can independently bring an overseas provider within scope, subject to authorized-intermediary exceptions.

The result is an activity-by-activity test rather than a single jurisdictional label applied to the token. A customer approaching a firm on their own initiative does not, by itself, create an exemption.

The FCA plans to consult on further perimeter guidance changes in late 2026 following proposed amendments to the underlying legislation, with final amended guidance slated for early 2027.