Do Crypto Firms Need FCA Authorisation? The UK Gateway, Overseas Firms and MiCA

Do crypto firms need FCA authorisation? From 25 October 2027 the answer for most exchanges, brokers, custodians, staking providers and UK stablecoin issuers serving British customers is yes, and the window to apply opens in three weeks. The Financial Conduct Authority's authorisation gateway for the new cryptoasset regime opens on 30 September 2026 and closes on 28 February 2027, and firms that do not apply in time face a run-off rather than a licence. For overseas groups the stakes are sharper still: the new rules reach firms outside the UK that deal with UK consumers, the FCA expects most of them to operate through a UK legal entity, and an authorisation under the EU's Markets in Crypto-Assets Regulation (MiCA) does not carry across the Channel. This analysis explains who needs FCA authorisation, how the territorial test works, what happens to late applicants, and how the UK regime sits beside MiCA and the US GENIUS Act.

The short answer: which crypto firms need FCA authorisation

Any firm that carries on one of the new cryptoasset regulated activities in the UK, by way of business, needs authorisation under Part 4A of the Financial Services and Markets Act 2000 (FSMA) once the regime commences. The legal basis is the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (SI 2026/102), which the FCA describes as having been passed by Parliament on 4 February 2026. The Regulations add new activities to the Regulated Activities Order and bring cryptoassets inside the FCA's perimeter for the first time, going well beyond the anti-money laundering registration and financial promotion rules that have defined its role until now.

In its 30 June 2026 announcement the FCA said plainly that crypto firms, "including trading platforms, intermediaries, custodians, stablecoin issuers, and firms arranging staking must obtain FCA authorisation to operate in the UK". That list captures the core of the market. It includes firms that are not UK-based, firms that already hold another FSMA permission (which will need a variation of permission rather than a fresh authorisation), and firms that today are registered only under the Money Laundering Regulations (MLRs).

Three points follow for anyone advising on whether a given business is caught:

• Activity comes first. Whether authorisation is needed turns on what the firm actually does, measured against the new activity definitions and their exclusions, not on how it describes itself.
• Location is not a shield. For trading, dealing and arranging, an overseas firm dealing with a UK consumer is treated as carrying on the activity in the UK.
• Existing status does not convert. MLR registration, e-money or payment institution status and section 21 approval arrangements do not become FSMA permissions automatically.

Firms looking for specialist support on the application itself can start with banking and finance advisers in our directory.

The FCA crypto authorisation gateway timetable

The FCA crypto authorisation gateway runs for five months, from 30 September 2026 to 28 February 2027, and the full regime begins on Monday 25 October 2027. The Explanatory Memorandum to the Regulations explains that commencement is staged: the FCA's rule-making powers came into force first so that it could finalise its rulebook, while the obligations on firms apply only from 25 October 2027.

The FCA published its final rules and guidance on 30 June 2026 in five policy statements, PS26/9 to PS26/13, supported by three pieces of finalised guidance, FG26/5 (Consumer Duty), FG26/6 (operational resilience) and FG26/7 (international firms). It has offered pre-application support meetings since July and said in June that it would publish a further policy statement in September 2026 on how the regulatory perimeter applies to cryptoasset activities. According to FinanceFeeds' 1 September preview of the gateway, applicants will submit through the FCA's online system a completed authorisation form, an updated financial data template and a supplementary information document with cryptoasset-specific sections.

Date	Milestone	Why it matters
4 February 2026	Cryptoassets Regulations 2026 made	Creates the new regulated activities and the territorial test
30 June 2026	FCA final rules: PS26/9 to PS26/13, FG26/5 to FG26/7	Sets the conduct, prudential, custody, stablecoin and market abuse rules firms will be assessed against
1 July 2026	MiCA transitional period ends across the EU	Unauthorised EU providers must have wound down; UK and EU timetables now diverge
30 September 2026	FCA application window opens	Applications within the window qualify for the saving provision
28 February 2027	Application window closes	Applications can still be made until commencement, but outside the saving provision
25 October 2027	UK cryptoasset regime commences	Unauthorised firms must have exited or enter a run-off

For groups with a London presence, the timetable means the governance work, capital planning and business plan must be substantially complete within weeks. In practice the gateway is best treated as the end of a preparation project rather than its start, and advisers in the United Kingdom can help firms test their readiness.

The nine regulated activities and their minimum capital

The Regulations create nine new regulated activities for qualifying cryptoassets, and the FCA has set a permanent minimum capital requirement for the main ones. FG26/7 lists the activities with their new article numbers in the Regulated Activities Order, and PS26/12, the prudential policy statement, confirms the permanent minimum requirements (PMRs) "as consulted on".

Regulated activity	Article (RAO)	Permanent minimum requirement
Issuing qualifying stablecoin	9M	£350,000
Safeguarding qualifying cryptoassets (and relevant specified investment cryptoassets)	9N(1)(a)	£150,000
Arranging safeguarding	9N(1)(b)	Not listed separately in the PS26/12 PMR summary
Operating a qualifying cryptoasset trading platform	9S	£150,000
Dealing in qualifying cryptoassets as principal	9T	£750,000
Dealing in qualifying cryptoassets as agent	9W	£75,000
Arranging deals in qualifying cryptoassets	9Y(1)	£75,000
Making arrangements with a view to transactions	9Y(2)	Not listed separately in the PS26/12 PMR summary
Arranging qualifying cryptoasset staking	9Z6	£150,000

The PMR is only a floor. PS26/12 stresses that the binding requirement is the higher of the PMR, a fixed overheads requirement and a K-factor requirement that scales with activity volume. The FCA also refused to phase the PMR in: because it is a threshold condition, "a firm cannot be authorised to carry on a regulated activity unless it meets the PMR for that activity". The £750,000 figure for dealing as principal deliberately mirrors the initial capital requirement for investment firms dealing on own account under MIFIDPRU, and the FCA said it had considered, and rejected, calibrating against MiCA because MiCA contains no directly equivalent activity.

Beyond capital, the overview of the policy statements confirms that the FCA is applying the Consumer Duty, its conduct of business rules, the Senior Managers and Certification Regime, operational resilience requirements and its financial crime framework across all regulated cryptoasset activities. Firms mapping those obligations will often need regulatory specialists alongside their crypto and technology counsel.

Overseas crypto firms: when a non-UK exchange is carrying on business in the UK

An overseas crypto firm needs FCA authorisation if it operates a trading platform, deals as principal or agent, or arranges deals where the sale or subscription involves a UK consumer, wherever the firm is based. This is the effect of the Regulations' amendment to section 418 of FSMA, which decides when a person is treated as carrying on an activity in the UK. The Explanatory Memorandum states that for those four activities, firms "will need to be authorised in the UK regardless of whether the firm is based in the UK or overseas".

Two important limits narrow the test. First, where a UK-authorised trading platform or UK-authorised principal dealer sits between the overseas firm and the UK consumer in the relevant transaction, the overseas firm does not itself need UK authorisation. Second, overseas firms carrying on those activities but serving only UK institutional customers are outside the requirement, provided those institutions are not acting as intermediaries for UK consumers. The regime is therefore built around the retail relationship, not the mere presence of a UK counterparty.

Custody and staking are drawn differently. The Memorandum explains that firms need authorisation if they safeguard qualifying cryptoassets, or arrange staking, "in the UK or on behalf of a consumer in the UK". There is an exception where the firm acts at the direction of someone who is itself authorised for that activity, which matters for sub-custody chains. FG26/7 adds that firms should also test their activity against the exclusions in the Regulations, including the group activity exclusion (Article 9O), the temporary settlement arrangements exclusion (Article 9Q), the absence of holding out exclusion (Article 9U) and the introducing exclusion (Article 9Z1), as well as the "by way of business" test.

For overseas groups, the practical first step is a customer-base analysis: which UK clients are consumers, which are institutions, and which flows already run through a UK-authorised intermediary. That analysis often determines whether a UK application is needed at all.

UK legal entity or branch: what FG26/7 expects of international firms

The FCA's baseline is that international firms needing authorisation should carry on their cryptoasset activities from a UK legal entity, with a limited exception allowing trading platforms to operate through a UK branch. FG26/7, the FCA's Approach to International Cryptoasset Firms, published on 30 June 2026, states that "generally, we do not expect a UK branch alone to be compatible with our minimum standards". In all cases the FCA expects applicants to have a presence in the UK, and it wants an appropriate share of the firm's "mind and management" in the country.

The reasoning is rooted in insolvency. FG26/7 warns that an overseas firm, including one operating through a UK branch, is more likely to be subject to its home state's insolvency regime, which may not respect the client asset protections in the FCA's CASS rules and UK insolvency law. Client cryptoassets might then fall into the general estate, leaving customers to prove as creditors rather than claim as beneficiaries. The guidance adds that legal uncertainty over property rights in cryptoassets across jurisdictions amplifies that risk. Firms designing custody structures can find insolvency and restructuring advisers who work on client asset questions of this kind.

The exception is for operating a qualifying cryptoasset trading platform. The FCA sees a case for a UK branch where it gives UK users access to global liquidity and better execution. It sketches a "sub plus branch" model in which a UK branch runs the platform functions while a UK subsidiary handles activities such as safeguarding. Two supporting concessions follow: a branch-authorised platform operator can in principle obtain a restricted principal dealer permission limited to matched principal trading on its own platform, and a restricted safeguarding permission to run a settlement float wallet, without a separate UK entity for either.

The FCA sets conditions. It will authorise the whole firm, including overseas offices, and it expects the home regulator to have comparable protections and requirements, "as determined by the FCA". A letter of good standing from the home regulator will not be enough on its own. Senior managers directly involved in UK activities are expected to spend an adequate and proportionate amount of time in the UK, notwithstanding the digital and mobile nature of many crypto businesses.

Why MLR registration and section 21 approval are not enough

MLR registration does not convert into FSMA authorisation, so every registered cryptoasset business that wants to continue in scope must apply through the gateway. The FCA's guidance states that firms wanting to provide the new cryptoasset regulated activities "will need to be authorised by us", and commentators have made the same point bluntly: Entrepreneur UK noted in August that registration under the anti-money laundering regime "will not automatically convert" into authorisation.

The same applies to firms that reach UK consumers through the financial promotions gateway. Today, crypto firms that are neither FSMA-authorised nor MLR-registered, including overseas firms, can have an FCA-authorised firm approve their promotions under section 21 of FSMA. The FCA's guidance on section 21 approvers explains that firms which apply during the window may keep using their approver until their application is determined; firms that apply late may keep using it until commencement; and firms that never apply must run off their UK business before 25 October 2027. Approvers themselves are warned not to approve promotions for anyone conducting regulated activity without the required permissions.

The promotions point is not academic. Marketing is where crypto businesses most often meet consumers and regulators, as the scrutiny of crypto sponsorships of Premier League clubs and the EU complaints over financial scam advertising on major platforms both show. A firm that loses its route to UK customers also loses its lawful route to advertise to them.

Missing the window: the saving provision and the transitional provision

Firms that apply within the window and are still awaiting a decision at commencement can keep operating under the saving provision; firms that apply late, withdraw or are refused enter a transitional provision that only allows an orderly run-off. The FCA's overview of the policy statements describes the savings provisions as allowing certain firms already operating in UK cryptoasset markets to continue specified activities "for a limited period while they seek authorisation".

The FCA's page on the transitional provision, last updated on 24 August 2026, sets out the other side. A firm in the transitional provision is exempt from the general prohibition in section 19 of FSMA only to the extent necessary to perform contracts entered into before it entered the provision. It cannot enter into new contracts with existing UK customers or with new ones, and it has a maximum of two years to wind down.

Firm's position at 25 October 2027	Outcome	What it can do
Applied in the window, decision pending or refusal still open to review	Saving provision	Continue its UK cryptoasset services until final determination
Applied in the window, application withdrawn or no longer open to review	Transitional provision	Run off pre-existing contracts only, for up to two years
Applied after 28 February 2027, application still pending, refused or withdrawn	Transitional provision	Run off pre-existing contracts only, for up to two years
Never applied, or submitted an application rejected as incomplete	Not eligible	Must have exited the UK market before commencement

The practical message is that the window matters more than the commencement date. An application lodged on 1 March 2027 is still possible, but the firm loses the protection of the saving provision if the FCA has not decided by commencement. The FCA has also warned that an application missing the minimum information it asks for will be treated as not made, so a rushed filing is no substitute for a complete one.

Stablecoins: UK issuance and coins issued overseas

A firm needs FCA authorisation as a stablecoin issuer if it issues qualifying stablecoin from an establishment in the UK, or arranges for all three limbs of issuance (offering, redemption and maintaining the value) to be carried out in the UK on its behalf. The Explanatory Memorandum explains that outside that scenario, stablecoins issued overseas are treated like other qualifying cryptoassets and are subject to the admissions and disclosures regime rather than the issuer regime.

PS26/10 sets the rules for UK issuers. The FCA's summary lists the main changes from consultation, including simplifying backing asset composition, confirming statutory trust arrangements for backing assets, adjusting redemption timelines, allowing limited intragroup custody subject to safeguards and permitting up to a 5% excess in the backing asset pool. PS26/12 also cut the coefficient of the stablecoin issuance K-factor, K-SII, from 2% to 1%. The FCA and the Bank of England are working together on stablecoins that HM Treasury recognises as systemic, and the FCA said in June that it would consult later this year on how its rules apply in that case. Payment and fintech groups considering sterling stablecoins will want technology and fintech advisers alongside their regulatory counsel.

How the UK regime compares with MiCA after 1 July 2026

MiCA and the UK regime share a structure (authorisation, capital, conduct and market abuse rules) but they are separate systems, and neither recognises the other's licences. ESMA's statement on the end of MiCA's transitional periods, dated 17 April 2026, confirmed that the transitional period would expire across the EU on 1 July 2026, after which "any entity providing crypto-asset services to EU clients without a MiCA licence will be in breach of EU law".

The same statement reminded firms established outside the EU that, beyond the narrow exception of reverse solicitation, they may not provide MiCA services to EU investors or solicit EU clients, including in a business-to-business setting. The French AMF, relaying ESMA's expectations on 23 June 2026, stressed that unauthorised providers should by then have implemented credible wind-down plans. FinanceFeeds reported that MiCA had authorised more than 330 crypto-asset service providers by late August 2026, and that the FCA has not confirmed any formal equivalence or passporting arrangement.

Feature	UK (Cryptoassets Regulations 2026)	EU (MiCA)	US (GENIUS Act, stablecoins only)
Status on 8 September 2026	Rules final; gateway opens 30 September 2026; regime live 25 October 2027	Fully applicable; transitional period ended 1 July 2026	Enacted 18 July 2025; takes effect by 18 January 2027 at the latest
Scope	Trading, dealing, arranging, custody, staking, UK stablecoin issuance	Crypto-asset services, asset-referenced tokens and e-money tokens	Payment stablecoin issuers and the platforms that offer their coins
Cross-border access	Overseas firms dealing with UK consumers must be authorised; UK entity expected, branch possible for platforms	Authorised CASPs can serve the whole EU; third-country firms limited to reverse solicitation	Foreign issuers need a Treasury comparability determination and OCC registration
Recognition of other regimes	None yet; FG26/7 leaves room for future recognition arrangements	No third-country route for CASPs beyond reverse solicitation	Reciprocity arrangements possible under section 18

For groups licensed in the EU, the practical consequence is two parallel projects. Entrepreneur UK observed that while MiCA lets an authorised provider serve the whole single market, the UK framework may require a distinct regulated entity. FG26/7 does say that it "does not preclude or prejudge any recognition or deference arrangements" the government may legislate for in future, but nothing of that kind exists today. Groups coordinating the EU side of a dual application can compare advisers in Malta, Luxembourg and Ireland.

The US dimension: the GENIUS Act and foreign stablecoin issuers

The United States has taken a narrower, stablecoin-first route, and its cross-border rules will shape how UK and EU issuers access US users. The GENIUS Act, Public Law 119-27, was approved on 18 July 2025. It takes effect on the earlier of 18 months after enactment or 120 days after the federal regulators issue final implementing regulations, so by 18 January 2027 at the latest.

Three provisions matter most for international groups. First, from three years after enactment it becomes unlawful for a digital asset service provider to offer or sell a payment stablecoin to a person in the United States unless it is issued by a permitted payment stablecoin issuer. Second, section 18 creates an exception for foreign issuers, but only if the Secretary of the Treasury determines that their home regime is comparable, the issuer registers with the Comptroller of the Currency, it holds reserves in a US financial institution sufficient to meet US liquidity demands (unless a reciprocal arrangement provides otherwise), and its home country is not subject to comprehensive US sanctions.

Third, the Act bars both permitted and foreign issuers from paying holders "any form of interest or yield" solely for holding the coin.

A UK stablecoin issuer authorised under PS26/10 would therefore still need a separate US pathway, and the comparability determination is a policy decision in Washington rather than a filing a firm controls. Groups weighing a US launch can find US advisers through the directory.

What the FCA will test at the gateway

The FCA will assess crypto applicants against the same threshold conditions it applies to every authorised firm: effective supervision, appropriate resources, suitability and a sound business model. FG26/7 notes that deficiencies in business plans have been a common reason for unsuccessful MLR registrations by crypto firms, and that it sees no reason for structural differences between crypto and traditional financial activities on suitability and business model.

In practice, applicants should expect scrutiny in five areas:

• Governance and accountability. The Senior Managers and Certification Regime applies. Dion Seymour of Andersen told Accounting and Business on 2 September that firms "will need to establish accountability, risk management processes and oversight" of their crypto activities.
• Market abuse. PS26/9 introduces the admissions and disclosures regime and the market abuse regime for cryptoassets (MARC), including inside information disclosure and, for large UK platforms, on-chain monitoring. Platform applicants may need market abuse specialists to design surveillance.
• Custody. PS26/11 applies CASS 17 to client cryptoassets, with requirements on ownership rights, reconciliation and private key management.
• Financial crime. The FCA plans updates to its Financial Crime Guide on AML and KYC for crypto firms, and existing MLR obligations continue. Firms can consult economic crime advisers on control frameworks.
• Operational resilience. FG26/6 sets expectations for crypto operational resilience, an area where cyber security specialists will be needed on wallet and key infrastructure.

Once authorised, crypto firms fall under the FCA's full supervision and enforcement powers, including financial penalties, prohibitions, public censure and prosecution. The FCA's David Geale described a framework that "doesn't force firms to choose between regulatory certainty and room to innovate", and its consumer warnings, such as its recent alert on ghost broking sold through social media, are a reminder that unauthorised business remains firmly on its radar.

Common mistakes to avoid before the gateway opens

The most common mistake is to treat the gateway as a formality for firms that are already registered. Several others recur in the FCA's guidance and early market commentary:

• Assuming a MiCA licence helps legally. Documentation may overlap, but there is no passport or equivalence, and the FCA calibrated its capital rules without reference to MiCA.
• Ignoring the customer mix. An overseas firm that believes it serves only institutions must check that none of them is acting as an intermediary for UK consumers.
• Planning a branch by default. Only trading platforms have a recognised branch route, and even then the FCA expects safeguarding in a UK entity except for a restricted settlement float.
• Under-capitalising. The PMR must be met at authorisation, and the real requirement is the higher of PMR, fixed overheads and K-factors.
• Filing late or thin. A late application loses the saving provision; an incomplete one is treated as never made.
• Forgetting the consumer story. The FCA says crypto "remains high-risk", and research on volatility across crypto assets helps explain why the Consumer Duty guidance in FG26/5 will be applied closely.

When to get professional help

Firms should bring in specialist advisers now if they are overseas businesses with UK retail customers, if they combine platform, dealing and custody activities, or if they plan to issue a sterling stablecoin. These are the cases where the perimeter analysis, legal entity structure and capital planning interact, and where mistakes are hardest to correct once the window closes. For most crypto firms serving UK consumers, the answer to whether they need FCA authorisation is yes, and the remaining question is whether they will be ready by 28 February 2027. Directory users can compare financial services advisers and cross-border specialists before the gateway opens on 30 September 2026.

Frequently asked questions

Do crypto firms need FCA authorisation?

Yes, if they carry on any of the new regulated cryptoasset activities in the UK once the regime starts on 25 October 2027. That covers trading platforms, dealers, arrangers, custodians, staking providers and UK stablecoin issuers. Firms already authorised for other activities need a variation of permission rather than a new authorisation.

When can firms apply for FCA crypto authorisation?

The FCA's gateway opens on 30 September 2026 and the application window closes on 28 February 2027. Applications can still be made after the window closes and before commencement, but late applicants do not benefit from the saving provision if their application is undecided when the regime starts.

Does MLR registration carry over to the new regime?

No. Registration as a cryptoasset business under the Money Laundering Regulations does not convert into authorisation under FSMA. Registered firms that want to continue providing in-scope services after 25 October 2027 must apply through the gateway like any other applicant and meet the full threshold conditions.

Do overseas crypto exchanges need FCA authorisation?

Yes, if they operate a trading platform, deal or arrange deals where the transaction involves a UK consumer. The exceptions are where a UK-authorised platform or principal dealer intermediates the transaction, or where the overseas firm serves only UK institutional customers that are not acting for UK consumers.

Can an overseas firm be authorised through a UK branch?

Generally not. The FCA's baseline in FG26/7 is a UK legal entity. The main exception is operating a trading platform, where a UK branch may be accepted if it gives UK users access to global liquidity and the home regulator offers comparable protections, as judged by the FCA.

Does a MiCA licence allow a firm to serve UK customers?

No. MiCA authorisation lets a crypto-asset service provider operate across the EU single market, but the UK is outside that system and no equivalence or passporting arrangement exists. A MiCA-licensed group serving UK consumers needs separate FCA authorisation for its UK activities.

How much capital does a UK crypto firm need?

The permanent minimum requirement ranges from £75,000 for dealing as agent and arranging deals to £750,000 for dealing as principal, with £150,000 for custody, platforms and staking and £350,000 for stablecoin issuance. The binding requirement is the higher of this floor, a fixed overheads requirement and K-factor requirements.

What happens if a crypto firm does not apply in time?

A firm that never applies must exit the UK market before 25 October 2027 or risk committing the offence of unauthorised business. A firm that applies late and is undecided, refused or withdraws enters the transitional provision, which allows it only to run off existing contracts for up to two years.

How does the GENIUS Act affect UK stablecoin issuers?

A UK-authorised issuer has no automatic US access. Under section 18 of the GENIUS Act, a foreign issuer's coins can be offered in the US only if the Treasury finds its home regime comparable, the issuer registers with the Comptroller and it holds sufficient US reserves, among other conditions.

Sources

1. FCA: FCA sets landmark crypto rules to cement the UK's place as a global hub (30 June 2026)
2. FCA: Overview of our cryptoassets regime policy statements (30 June 2026)
3. FCA: FG26/7 Approach to International Cryptoasset Firms (30 June 2026)
4. FCA: PS26/12 A prudential regime for cryptoasset firms (30 June 2026)
5. The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026, SI 2026/102
6. Explanatory Memorandum to SI 2026/102
7. FCA: Cryptoassets: the transitional provision (updated 24 August 2026)
8. FCA: Cryptoasset firms: use of s.21 approvers (updated 30 June 2026)
9. FCA: Cryptoasset firms: authorisation, supervision and enforcement (updated 30 June 2026)
10. ESMA: Statement on the end of transitional periods under MiCA (17 April 2026)
11. AMF: End of the MiCA transitional period, ESMA sets out its expectations (23 June 2026)
12. GENIUS Act, Public Law 119-27 (US Government Publishing Office)
13. FinanceFeeds: The FCA's crypto licensing gateway opens this month (1 September 2026)
14. Andersen: Dion Seymour comments in Accounting and Business (2 September 2026)
15. Entrepreneur UK: UK crypto firms face a two-market regulatory challenge (17 August 2026)

About this article

This analysis was researched and written by The Corporate INTL Newsroom, which covers cross-border legal, regulatory and business developments for lawyers, professional advisers and financiers in over 150 jurisdictions. It has been checked against the Cryptoassets Regulations 2026 and their Explanatory Memorandum, the FCA's final policy statements and guidance, ESMA's MiCA statement, the text of the GENIUS Act and primary reporting. The FCA's further perimeter policy statement, promised for September 2026, had not been published at the time of writing. This article is general information, not legal advice; for advice on a specific matter, consult a qualified adviser. Last reviewed 8 September 2026. For more analysis like this, visit the Corporate INTL newsroom or subscribe to Corporate INTL.