UK regulators have laid out a clear timeline for the country’s upcoming crypto licensing framework, giving firms just over a year to prepare before applications formally open.

The Financial Conduct Authority said crypto asset service providers will be able to begin applying for authorization under the new regime from September 2026. The rules themselves are expected to take effect on Oct. 25, 2027, leaving a relatively tight window for approvals before the framework becomes fully operational.

Earlier coverage: UK crypto regulation is moving from theory to execution.

The move signals the UK’s intention to bring crypto firms under a regulatory structure closer to traditional financial services, with licensing requirements anchored in existing financial law.

Existing registrations won’t carry over automatically

Under the plan, every firm offering regulated crypto services in the UK will need authorization under the Financial Services and Markets Act. That requirement applies even to companies already registered with the regulator under anti-money laundering rules or payment-related frameworks.

The FCA made clear that these registrations will not automatically convert into full authorization. Firms currently registered under money laundering regulations must submit new applications and be approved before the regime starts. Likewise, companies already authorized for other financial activities under FSMA will need to formally expand or amend their permissions to cover crypto services.

Marketing rules are also tightening. Crypto firms that currently rely on third-party approvals for financial promotions will be required to obtain direct FCA authorization to advertise products in the UK.

Miss the window, face limits on growth

The regulator plans to open a defined application window that will run for at least 28 days and close no later than 28 days before the new regime begins. Applications filed during that period are expected to be processed ahead of the October 2027 launch.

Draft legislation includes a safeguard allowing firms that apply on time to continue operating while their applications are under review. However, companies that fail to apply within the window — or are not authorized when the regime goes live — will fall under transitional rules. These firms may be allowed to maintain existing services but will be barred from launching new products.

Late applications will still be accepted, but the FCA warned that assessments could take longer, potentially delaying market expansion plans.