UK Financial Conduct Authority Opens Applications for Crypto Firm Authorization

The UK’s Financial Conduct Authority (FCA) has officially opened applications for crypto firms seeking authorization, a move that brings the industry under comprehensive regulation for the first time. This announcement was made on Wednesday as part of the FCA's ongoing efforts to establish clarity and legitimacy within the crypto sector.

Dominic Cashman, director of authorisation at the FCA, highlighted that the new regulatory framework aims to enhance consumer protections while providing firms with a clear operational structure. Companies applying for authorization must demonstrate compliance with requirements related to consumer protection, customer-asset safeguarding, market integrity, and financial resilience.

This initiative is part of a broader legislative effort in the UK to regulate digital assets, which have been recognized as property since last year. The FCA finalized its regulatory framework for cryptoassets in June, with the new regulations set to take effect in October 2027. However, the UK is currently lagging behind the EU and the US in terms of digital asset regulation, with the EU's Markets in Crypto-Assets regulation already in effect since December 2024.