Guide summary

Apply on the FCA's Connect system, using the FCA information document and financial data template
An application missing the minimum information is rejected and you are treated as not having applied
Hold the permanent minimum capital for each activity; it is a threshold condition with no phase-in
If you apply for several activities, you pay only the highest applicable application fee
Apply for FSMA authorisation even if MLR registered; registration does not convert or guarantee it
Do not apply for MLR registration after 31 July 2027; this is FCA guidance, not a legal cut-off
Once authorised, tell the FCA before acting as an exchange or wallet provider, or within 28 days
Unauthorised activity from 25 October 2027 can mean up to 2 years in prison or a fine, on indictment

From 25 October 2027 you need FCA authorisation to carry on any of seven cryptoasset activities in the UK, or for UK consumers, unless an exemption applies. The rules apply across the UK. When you apply decides what you may do once the regime starts.

Apply inside the application window

FCA cryptoasset authorisation window and transition

The FCA application window for regulated cryptoasset activities (30 September 2026 to 28 February 2027), full commencement on 25 October 2027, and what happens to firms whose applications are pending, refused, late or never made.

You can apply to the FCA for permission to carry on regulated cryptoasset activities, or to vary an existing permission, from 30 September 2026. The relevant application period, set by an FCA direction under regulation 52 of SI 2026/102, runs to 28 February 2027. The regime commences in full on 25 October 2027.

What happens at commencement depends on when you applied. If you applied in the window and your application is still undetermined, or was refused but is still open to review or appeal, the saving provision lets you carry on, including taking on new business, until it is finally decided. It ends in any case at the end of 24 October 2029. If you applied in the window but were refused with no review pending, or withdrew, or applied after 28 February 2027 and before 25 October 2027, only the transitional provision applies: you may perform pre-existing contracts, cannot take on new UK business, and must notify the FCA and your counterparties. If you never applied, neither provision applies and you must run off your UK cryptoasset business before 25 October 2027.

Gateway opens: 30 September 2026 (FCA direction under regulation 52, SI 2026/102)
Application window closes: 28 February 2027 (last day to apply and be eligible for the saving provision)
Full commencement: 25 October 2027
Firms already authorised under FSMA: Apply for a variation of permission to add the new cryptoasset activities
FCA handling of in-window applications: Expected before 25 October 2027; applications after the window are accepted but not expedited
Pending, or refused but under review (applied in window): Saving provision (regulation 53): continue operating and take on new business until finally determined
Refused with no review pending, or withdrawn (applied in window): Transitional provision (regulations 55 and 56): pre-existing contracts only, no new UK business
Applied after 28 February 2027 and before 25 October 2027: Transitional provision only
Never applied: Neither provision applies; run off UK cryptoasset business before 25 October 2027
Overseas group members relying on the saving provision: Must notify the FCA that they are carrying on a relevant cryptoasset activity (regulation 54)

The transitional provision in regulations 55 and 56 allows a maximum 2-year wind-down of pre-existing contracts. You must notify the FCA and your counterparties.

FCA - how the cryptoasset gateway will operate (opens in a new tab)

FCA - the cryptoasset transitional provision (opens in a new tab)

Check which of your activities are regulated

Match everything your business does with qualifying cryptoassets to one of the activities below and check its exclusions. The permissions you ask for set your application fee and your capital requirement.

Regulated cryptoasset activities under FSMA

The seven regulated cryptoasset activities inserted into the Regulated Activities Order by SI 2026/102 (articles 9M to 9Z6), the definitions of qualifying cryptoasset and qualifying stablecoin (articles 88F and 88G), and the UK consumer test that decides whether an overseas firm needs FCA authorisation.

From 25 October 2027 seven cryptoasset activities become regulated activities under the Financial Services and Markets Act 2000 (FSMA). If you carry on any of them in the UK, or for UK consumers, without Part 4A permission or an exemption you breach the general prohibition. The activities sit in a new Chapter 2B of the Regulated Activities Order 2001, inserted by regulation 40 of the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (SI 2026/102).

The regime applies to qualifying cryptoassets: cryptoassets that are fungible and transferable and are not solely a record of value or contractual rights (article 88F). Tokenised securities and other specified investment cryptoassets, fiat currency, central bank digital currencies and limited-network tokens redeemable only with the issuer for goods or services are outside the definition. A qualifying stablecoin is a qualifying cryptoasset that seeks or purports to keep a stable value against a particular fiat currency, with fiat currency or other assets held to maintain that value (article 88G).

Territorial scope turns on UK consumers. An overseas firm that sells qualifying cryptoassets directly to individuals in the UK acting outside their trade, business or profession, or safeguards or stakes for them, is treated as carrying on the activity in the UK and needs authorisation. An overseas firm that serves only UK institutional customers, or whose UK consumer business is intermediated by a UK-authorised trading platform or principal dealer, does not. The regulations extend to England and Wales, Scotland and Northern Ireland without variation.

Article 9M: Issuing qualifying stablecoin in the UK (offering or issuing, redeeming, and maintaining the backing assets)
Article 9N: Safeguarding qualifying cryptoassets (custody), including arranging for another person to safeguard them
Article 9S: Operating a qualifying cryptoasset trading platform (a system in which multiple buying and selling interests can interact)
Article 9T: Dealing in qualifying cryptoassets as principal (exclusions in articles 9U and 9V)
Article 9W: Dealing in qualifying cryptoassets as agent (exclusion in article 9X mirrors article 9V)
Article 9Y: Arranging deals in qualifying cryptoassets (exclusions in articles 9Z to 9Z5, including introductions and providing means of communication)
Article 9Z6: Qualifying cryptoasset staking, including liquid staking (exclusions in articles 9Z7 to 9Z9)
General exclusions: Article 9Z10 (cryptoasset activity incidental to selling goods or supplying services) and article 9Z11 (incidental professional activity)
Qualifying cryptoasset (article 88F): Fungible, transferable, and not solely a record of value or contractual rights
Qualifying stablecoin (article 88G): A qualifying cryptoasset that seeks or purports to keep a stable value against a fiat currency
UK consumer (FSMA section 418(6F)): An individual in the UK acting for purposes other than their trade, business or profession
Overseas firms serving UK consumers directly: Need Part 4A permission; the FCA's baseline expectation is a UK legal entity
Overseas firms serving only UK institutional customers: Trading platform, dealing and arranging activities are not treated as carried on in the UK
Public offers and admissions to trading: Separate designated activities under Part 2 of SI 2026/102 (not Part 4A permissions)
Effective date: 25 October 2027 (full commencement day, regulation 1(2) SI 2026/102)

Several activities have exclusions. For custody under article 9N, articles 9O to 9R exclude temporary safeguarding to settle a transaction, and custody covers relevant specified investment cryptoassets as well as qualifying cryptoassets. For dealing as principal under article 9T, articles 9U and 9V exclude minting, transfers for no consideration, employee issuance and intra-group transactions. For staking, the exclusions in articles 9Z7 to 9Z9 apply, and purely technical services such as operating a validator node are excluded.

Overseas firms serving UK consumers directly need Part 4A permission under section 418 of FSMA, cases 9 to 11. Public offers and admissions to trading are separate designated activities, with a market abuse regime for qualifying cryptoassets.

FCA - a new regime for cryptoasset regulation (opens in a new tab)

SI 2026/102 regulation 40 - the new regulated cryptoasset activities (opens in a new tab)

Know your fee and capital requirement

FCA cryptoasset application fees and minimum capital

FCA application fees for regulated cryptoasset activities from 30 September 2026 (Category 4 £2,820, Category 6 £11,260, Category 7 £28,150), the highest-fee rule, the first periodic fee year, and the permanent minimum capital requirements from PS26/12.

When you apply to the FCA for permission to carry on regulated cryptoasset activities you pay an application fee set by the activity. From 30 September 2026 the fee is £2,820 (Category 4) for arranging, dealing as agent or staking; £11,260 (Category 6) for dealing as principal, safeguarding or issuing qualifying stablecoin; and £28,150 (Category 7) for operating a qualifying cryptoasset trading platform. If you apply for several activities, or for FSMA authorisation and MLR registration together, you pay only the highest applicable fee. Authorised cryptoasset firms pay periodic fees from the 2028/29 fee year in a new fee-block A.26.

You must also hold regulatory capital. The FCA prudential rules (PS26/12) set a permanent minimum requirement for each activity, from £75,000 to £750,000. Your own funds requirement is the highest of the permanent minimum requirement, the fixed overheads requirement and the K-factor requirement. The permanent minimum requirement is a threshold condition: you cannot be authorised for an activity unless you meet it, and there is no phase-in.

Category 4 application fee: £2,820 - arranging deals, dealing as agent, staking
Category 6 application fee: £11,260 - dealing as principal, safeguarding, issuing qualifying stablecoin
Category 7 application fee: £28,150 - operating a qualifying cryptoasset trading platform
Multiple permissions: Only the highest applicable application fee is charged, including where FSMA authorisation and MLR registration are applied for together
Fees in force from: 30 September 2026 (FCA 2026/58, Handbook Notice 144)
Periodic fees: First charged for the 2028/29 fee year in new fee-block A.26; fee-data estimates must still be supplied at application
Permanent minimum requirement - dealing as principal: £750,000
Permanent minimum requirement - issuing qualifying stablecoin: £350,000
Permanent minimum requirement - safeguarding, trading platform, staking: £150,000
Permanent minimum requirement - dealing as agent, arranging: £75,000
Own funds requirement: The highest of the permanent minimum requirement, fixed overheads requirement and K-factor requirement (PS26/12)
Phase-in: None; the permanent minimum requirement is a threshold condition from 25 October 2027

FCA - authorisation and registration application fees (opens in a new tab)

FCA PS26/12 - a prudential regime for cryptoasset firms (opens in a new tab)

Prepare and submit your application

You apply on the FCA's Connect system. The FCA publishes an information document covering every question on the authorisation form, a cryptoasset form for firms varying an existing permission, and a financial data template you must complete. Free pre-application meetings are available if you give the FCA meaningful information about your business model, but the FCA does not give advice. An application that lacks the minimum information is rejected, and you are treated as not having applied unless you later send a valid one.

Hold the permanent minimum capital for each permission

It is a threshold condition, so have the capital in place before the FCA can authorise you for that activity.
Prepare the application pack

Work through the FCA information document, complete the financial data template and book a pre-application meeting if you want one.
Decide whether you also need MLR registration

Check whether you need to register under the Money Laundering Regulations before the regime starts.
Keep meeting the Money Laundering Regulations

Applying does not pause any existing duty, and registration is replaced by notification only once you are authorised.
Plan for your financial promotions

If an authorised firm approves your promotions as a section 21 approver, you can keep using it while your application is decided. Once authorised you approve your own.
Apply to vary your permission if you are already authorised

Add the cryptoasset activities to your existing permission, inside the window.

Handle your Money Laundering Regulations registration

Cryptoasset firms: Money Laundering Regulations registration before the FSMA regime

How a cryptoasset exchange provider or custodian wallet provider registered under the Money Laundering Regulations moves to FSMA authorisation, and when the FCA advises against new MLR registration applications.

There is no automatic conversion. If you are registered with the FCA under the Money Laundering Regulations (MLRs) as a cryptoasset exchange provider or custodian wallet provider, you must apply for FSMA authorisation, and registration does not guarantee it. A new business that needs to carry on cryptoasset activity before 25 October 2027 must still register under the MLRs.

From 30 September 2026 the FCA encourages firms to focus on FSMA authorisation. If you still want MLR registration, first contact the FCA's Pre-application support service (PASS) to explain your plans and why you need registration. The FCA advises against applying for MLR registration after 31 July 2027, because it is unlikely to determine the application before the regime starts. This is FCA guidance, not a statutory cut-off. Where the FCA accepts your case for late registration, it will use the information in your FSMA authorisation application for the MLR application and you pay a single fee, the higher of the MLR registration fee and the FSMA authorisation fee.

Once authorised, an authorised cryptoasset firm must inform the FCA before acting as a cryptoasset exchange provider or custodian wallet provider, or within 28 days of doing so (new regulation 56B of the MLRs).

Automatic conversion to FSMA authorisation: None; apply for FSMA authorisation
New MLR registration applications from 30 September 2026: Contact PASS first and explain why you need registration
FCA advice on MLR registration: Do not apply after 31 July 2027; guidance, not a statutory cut-off
Applying for both: Single fee, the higher of the MLR registration fee and the FSMA authorisation fee
Once authorised: Inform the FCA before acting as an exchange provider or custodian wallet provider, or within 28 days (regulation 56B)

If you apply for both, an MLR form cannot be treated as an FSMA application.

FCA - registration under the MLRs ahead of the new FSMA regime (opens in a new tab)

Apply for authorisation on FCA Connect (opens in a new tab)

Penalty risk · Up to 2 years in prison or a fine, or both, on indictment

Penalties for unauthorised cryptoasset business

From 25 October 2027, carrying on a regulated cryptoasset activity without authorisation or an exemption breaches the general prohibition in section 19 of the Financial Services and Markets Act 2000. On summary conviction the maximum is 6 months in prison or a fine up to the statutory maximum, or both. It is a defence to show you took all reasonable precautions and exercised all due diligence.

Enforced by: Criminal courts; the FCA also has civil and regulatory powers
Applies when: Carrying on a regulated cryptoasset activity from 25 October 2027 without authorisation or an exemption

Financial Services and Markets Act 2000, section 23

Legal basis

Primary legislation and key regulations

Financial Services and Markets Act 2000 Primary 2000 · UK-wide The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 SI 2026 · UK-wide Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 SI 2017 · UK-wide Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 SI 2001 · UK-wide

Browse UK legislation legislation.gov.uk

Official guidance

FCA - overview of the cryptoasset regime policy statements (opens in a new tab)

Publication · FCA

Cryptoassets: The transitional provision | FCA (opens in a new tab)

FCA

Cryptoasset firms: Use of s.21 approvers | FCA (opens in a new tab)

FCA

Cryptoasset firms: Registration under the MLRs ahead of the new FSMA regime | FCA (opens in a new tab)

FCA

Cryptoasset regulated activities: FSMA and the FCA Handbook | FCA (opens in a new tab)

FCA

A new regime for cryptoasset regulation | FCA (opens in a new tab)

FCA

Apply for FCA authorisation for cryptoasset activities

Apply inside the application window

Check which of your activities are regulated

Know your fee and capital requirement

Prepare and submit your application

Hold the permanent minimum capital for each permission

Prepare the application pack

Decide whether you also need MLR registration

Keep meeting the Money Laundering Regulations

Plan for your financial promotions

Apply to vary your permission if you are already authorised

Handle your Money Laundering Regulations registration

Legal basis

Official guidance

Related guides in Financial Regulation Overview

Register a money service business or crypto-asset business for AML supervision

Cryptoasset Business Regulation

Apply for FCA authorisation under Part 4A FSMA

Comply with Buy Now Pay Later regulation

Get authorised to operate as a bank