UK FCA Sets Oct 2027 Deadline for Crypto Licence Applications

Britain's Financial Conduct Authority published its final crypto rulebook Tuesday, setting a hard deadline for firms to get licensed or exit the market. Applications open September 30, 2026, and close February 28, 2027. Full enforcement starts October 25, 2027.

The framework covers trading venues, wallet providers, stablecoin issuers, staking operations, crypto lending platforms, and some DeFi protocols. The FCA said DeFi will face regulation only when an identifiable party maintains operational control. Firms already registered for anti-money laundering compliance do not get automatic authorisation – they must submit fresh applications alongside new entrants.

Exchange platforms face tougher listing standards. The FCA scrapped a previous exemption that let certain tokens list without disclosure documents. For qualifying digital assets, exchanges will apply a single 40% net risk position standard, replacing an earlier plan that split assets into separate risk buckets.

Stablecoin rules got lighter after industry feedback. Issuers no longer need to provide redemption projections for their reserve holdings. The capital reserve requirement for stablecoin creation dropped to 1%, down from the 2% initially proposed. Reserve funds must sit in a legal trust structure. Issuers can hold up to 5% in additional backing reserves and use restricted affiliated custody, provided protections are in place.