Tick-Tock goes the Crypto Clock: FCA says the time to think about authorisation is now

On 29 January 2026, the FCA held a public webinar on the New Regime for cryptoassets regulation, focussing on authorisations. In tandem with this, the FCA has also now updated its Cryptoasset firms: Authorisation, supervision and enforcement website. The key takeaway is simple: the countdown has begun. With the FCA’s authorisation gateway opening in September 2026, and the full regime going live in October 2027, cryptoasset firms must start preparing now if they want to meet the FCA’s expectations and avoid a last-minute scramble.  The FCA encourages firms to use its Pre-Application Support Service (or PASS) which will open for cryptoasset firm authorisations in July 2026.

Andrzej Wieckowski, a partner in our Financial Services Regulatory team says...  

“The FCA has made it very clear that firms that take early, structured steps toward authorisation will be in the strongest position to demonstrate they are willing and organised and will be ready to receive authorisation when the regime goes live. Waiting until the gateway opens in September 2026 is likely to leave firms on the back foot - the time to start preparing is now. We’ll be publishing further guidance, materials and insights to help firms navigate each stage of the process, so keep an eye out for more from TLT.”

The points not to miss...

Who is the New Regime expected to cover

As a quick reminder, the New Regime will be applicable to firms undertaking the following activities:

• Issuing qualifying stablecoin in the United Kingdom.
• Safeguarding of qualifying cryptoassets and relevant specified investment cryptoassets.
• Arranging for another person to safeguard qualifying cryptoassets or relevant specified investment cryptoassets.
• Operating a qualifying cryptoassets trading platform.
• Dealing in qualifying cryptoassets as principal.
• Dealing in qualifying cryptoassets as agent.
• Arranging (bringing about) deals in qualifying cryptoassets.
• Making arrangements with a view to transactions in qualifying cryptoassets.
• Making arrangements for qualifying cryptoasset staking

What are the key dates

• July 2026: The FCA will publish draft application forms and open PASS.
• 30 September 2026: The authorisation gateway is expected to open.
• 30 September 2026 to 28 February 2027: The application period.
• 25 October 2027: The New Regime is expected to come into force.

Why does the application period matter

The FCA confirmed that where a firm applies for authorisation (or variation) during the application period, the FCA expects to determine the application before the regime starts. Crucially, if a firm does apply during the application period but its authorisation is not determined before the New Regime goes live, the firm will be able to continue to carry on its activities as it did before the go-live under the saving provision provided for in the draft legislation.  If a firm does not apply for authorisation within the application period, it cannot take advantage of the saving provision – and risks having to severely limit its operations (or even run-off its business) after the New Regime goes live if it does not obtain authorisation by that time.  The savings provision is expected to expire in October 2029.

Firms are expected to be ready, willing and organised

The FCA confirmed that it will apply its “ready, willing and authorised” test when assessing applications. The FCA acknowledged that firms might not be 100% ready when they submit their applications - as long as firms can show a clear plan for how they intend to be ready by the time of authorisation. In the final stages of successful applications, the FCA will use “minded to approve” notifications which will explain that they are largely comfortable with the application and that they will approve the firm provided specific conditions are met.

Firms will no longer be able to rely on section 21 approvers

Under the New Regime, firms will no longer be able to rely on third party section 21 approvers to target UK customers. This will likely have a significant impact particularly to international firms who have been using the gateway to access the UK market.

Make use of PASS

Although this is not a pre-requisite for authorisation, the FCA encouraged firms to make use of the PASS process. Prospective applicant will be able to engage with the FCA from July 2026 - FCA does not expect firms to have an application ready at that time, but will want to understand (in an outline form) the firm’s business plan.

Firms already registered under MLRs

The New Regime will operate under the Financial Services and Markets Act 200 (“FSMA”).  As such, firms carrying on activities in scope of the regime will need to obtain a Part 4A permission under FSMA.  For firms registered under the current Annex 1 regime under the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017 (“MLRs”), this means a new authorisation.  Firms that already have a Part 4A permission for other regulated activities (e.g. custody or banking services) will need to submit a variation of permission to add the relevant cryptoasset activities to their scope of permissions.

Overseas groups

Overseas firms who apply for authorisation of a UK establishment under the New Regime will need to consider how to approach providing services to UK clients – for example, if they continue servicing clients from the overseas entity until the UK establishment is authorised, overseas firms will need to notify the FCA if they intend to take operate under the savings provision.  

Please reach out to Andrzej Wieckowski or Meghan Millward to discuss how the New Regime affects your operations.

Authors: Andrzej Wieckowski and Meghan Millward

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at January 2026. Specific advice should be sought for specific cases. For more information see our terms & conditions.