UK FCA opens crypto authorization window ahead of 2027 regime

The new framework will extend the FCA's regulatory oversight to encompass areas beyond existing anti-money laundering and financial promotion requirements. The regulator finalized these rules in June, which include provisions for stablecoin issuance, crypto trading platforms, and measures against market abuse.

Dominic Cashman, the FCA's director of authorization, stated that the new regime aims to provide enhanced consumer protections and a clear operational framework for firms. Emma Banymandhub, CEO of The Payments Association, welcomed the initiative but advised businesses already registered for money laundering regulations to approach this as a completely new authorization process. She emphasized that MLR registration will not be transferable and that businesses should be prepared for stringent standards, particularly smaller and growing enterprises.