The UK’s shifting crypto landscape

The application window and promotional hurdles

The application window for firms with existing UK crypto business opened on 30 September 2026 and remains open until 28 February 2027. Firms that submit applications during this period can rely on savings provisions to continue specified activities while the FCA assesses their status. The Financial Conduct Authority’s decision to restrict Rebuildingsociety.com from approving crypto promotions forced Binance to stop accepting new customers in the United Kingdom until the company can secure a new, FCA-approved promotional partner. This regulatory pressure on promotional partners creates a significant hurdle for exchanges attempting to comply with the new advertising rules. I think the FCA’s sudden tightening of promotional approvals is a chaotic way to manage the transition. The new regime also introduces market integrity rules covering insider trading and market manipulation. These rules apply to all firms carrying on regulated cryptoasset activities, including those dealing as principal or agent. The FCA rejected or saw the withdrawal of more than 85% of applications under the current anti-money laundering process, which makes the upcoming transition to the new regulatory framework a high-stakes period for all crypto firms. The legislative foundation for these rules is the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026, which was made on 4 February 2026. The regulatory framework requires all firms to bring in a qualified money laundering reporting officer and provide proof of where the money comes from.

Global access versus EU restrictions

The UK framework prioritizes global market access over the protectionist stance of the European Union. The new UK regime allows UK clients to access overseas trading venues and non-UK-issued stablecoins, which distinguishes the British approach from the more protectionist Markets in Crypto-Assets regulation currently used across the European Union. In contrast, Revolut uses a MiCA license from the Cyprus Securities and Exchange Commission to provide services across 30 EEA markets. You should check if your firm relies on MiCA passporting, because the UK rules apply by reference to specific regulated activities and territorial connections rather than a single authorization. The UK also treats qualifying stablecoins differently than electronic money. This distinction is vital for firms assessing their regulatory path. The capital requirement for qualifying stablecoin issuers dropped from 2% to 1% of issuance. While the EU saw eToro agree to restrict most of its crypto offerings in the US to just Bitcoin, Ethereum, and Bitcoin Cash, the UK aims for a more inclusive structure.

Compliance demands and the 2027 deadline

Firms face steep requirements to gain authorization. The FCA rejected or saw the withdrawal of more than 85% of applications under the current anti-money laundering process, which makes the upcoming transition to the new regulatory framework a high-stakes period for all crypto firms. The new regime also lowers the capital requirement for qualifying stablecoin issuers from 2% to 1% of issuance. While the UK aims to provide clarity, the FCA has not yet provided enough detail on which overseas jurisdictions offer comparable regulatory protections for branch authorization. Will the regulator provide more clarity on these jurisdictions before the 2027 deadline? Firms must act before the 25 October 2027 date or they will have to stop operating in the UK. This is especially true for firms handling staking, custody, or operating trading platforms. These firms must meet requirements for operational resilience and senior management accountability. All applicants must provide a business plan, an anti-money laundering policy, and their company structure. Applicants must also submit ID documents for directors, risk assessments, and transaction monitoring systems. The application fee depends on the size of the firm.