FCA opens the cryptoasset authorisation gateway

The FCA opened applications for its new cryptoasset regime on 30 September 2026. The application window closes on 28 February 2027, while the regime itself is expected to commence on 25 October 2027. These dates describe different stages of business preparation.

Existing registration does not convert automatically

The FCA says anti-money-laundering registration will not become FSMA authorisation automatically. Already authorised firms may need to vary permissions for new activities. Partner review should therefore focus on the particular service and legal entity.

For a PSP, this is a supplier-dependency question. If one participant performs an exchange and another holds assets, a group presentation is an incomplete account of each component's readiness. The partner map needs to match the actual money flow, rather than a collection of integration logos.

Record an application as an application

A supplier saying “we have applied” provides useful process information. Internally, that belongs in a different field from confirmed permissions and a promised commercial launch. Otherwise, sales, compliance and engineering may develop three interpretations of the same status.

The same discipline helps firms preparing their own submission. Start with a precise product description: customers, money flows, outsourced functions and responsibility. That model connects the legal programme to how the service will operate daily.

For merchants, another practical outcome is a clear provider contact responsible for communicating changes in service availability. Regulatory preparation should not first become visible as an unexpected interruption to payouts or onboarding.

The closing date is an external milestone, not a convenient starting point. Internal deadlines are needed for collecting evidence and reviewing documents. How the requirements apply to an individual firm should be determined from its activities, current FCA materials and appropriate professional advice. The immediate benefit of preparation is a shared and accurate view of the business dependencies.

What PSPs and merchants should check before the window closes

Even a firm that is not applying itself may be affected through its partners. A practical checklist:

• List the suppliers involved in cryptoasset activity: exchange, custody, payouts and payment acceptance.
• For each one, record the legal entity, current status and the activity that will require permission.
• Ask partners for written confirmation of their plans: whether an application has been submitted, when a decision is expected and whether a fallback exists.
• Review contracts for a duty to notify status changes and a right to terminate if permission is not granted.
• Identify an alternative supplier for critical functions and estimate how long a switch would take.
• Appoint an internal owner who maintains the status register and updates it as news arrives.

Risks and limitations

The main risk is leaving preparation to the final months. Gathering documents, describing processes and aligning with contractors take time, and application quality depends on how closely the described business model matches reality. If the regulator's response is delayed or requires further work, the firm needs a plan for the period before the regime begins.

For merchants, a separate risk is unexpected change at providers: some may narrow services for UK customers or alter terms. It is sensible to discuss scenarios and notice periods with them in advance. This article is not legal advice; specific conclusions should be drawn from current documents and qualified professional input.