The UK is introducing a phased licensing process for cryptocurrency companies.

UK financial regulators have announced a detailed timetable for the transition of the cryptocurrency market to full government oversight. The Financial Conduct Authority (FCA) has set clear deadlines for licensing crypto platforms, which will be an important step in establishing a transparent and regulated crypto industry in the country.

Application deadlines and the launch of the new regulatory regime

According to the FCA, applications for licenses for cryptocurrency exchanges and other crypto service providers will begin in September 2026. The regulator expects it will take companies approximately one year to complete the full registration process.

Full regulation of the crypto market in the UK is scheduled for October 25, 2027. From that date, all crypto exchanges, wallet operators, and related services will be required to operate under FCA supervision. The application deadline is no later than 28 days before this date.

Transitional Rules and Status of Existing Companies

Companies that submit their applications by the deadline will be able to continue operating in the UK market while their documents are being reviewed. Special transitional rules are in place for organizations that fail to submit their applications on time or that are not registered by the launch of the new regime.

Such companies will be able to temporarily continue selling existing products, but the launch of new services and offerings will be restricted. The FCA also allows applications to be submitted after the deadline, but warns that their review may take significantly longer.

Who will need to register with the FCA

Registration under the UK Financial Services and Markets Act (FSMA) will be mandatory for all companies providing crypto services in the UK. This requirement applies not only to new companies but also to:

• organizations already registered under the Money Laundering Regulations (MLRs);
• companies providing payment services;
• crypto businesses operating remotely with UK clients.

There is no automatic transfer of existing registrations; all market participants will have to re-register.

Restrictions on Marketing and Advertising of Crypto Services

The FCA is paying special attention to marketing activities. Crypto companies using affiliate programs or third-party advertising intermediaries are also required to obtain FCA registration. Without this, the promotion of crypto financial products, including third-party advertising, will be prohibited.

Regulatory Sandbox and Stablecoins

The UK currently has a regulatory sandbox regime for local stablecoin issuers. This allows them to test their products without applying standard regulatory restrictions. Applications for participation in this regime must be submitted to the FCA by January 18. Furthermore, the regulator plans to launch a trial using stablecoins for payments as early as 2026.

The transition to strict regulation requires careful preparation and strategic planning from crypto companies. IT-OFFSHORE will help you navigate the new FCA requirements, assess risks, prepare your business for licensing, and build a sound operating model for the UK market.