UK Parliament Enacts FSMA 2000 Cryptoassets Regulations 2026, Regime Starts October 2027

On 4 February 2026, Parliament made The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (the "Cryptoassets Regulations 2026"). The instrument is final and enacted. The Cryptoassets Regulations 2026 bring cryptoassets within the regulatory remit of the Financial Conduct Authority (FCA) under the Financial Services and Markets Act 2000 (FSMA 2000). The new cryptoasset regime is expected to come into force on 25 October 2027. An application window for firms seeking authorisation will open on 30 September 2026 and close on 28 February 2027.

The Cryptoassets Regulations 2026 amend FSMA 2000 to create new regulated activities specific to cryptoassets. Firms wishing to provide in-scope cryptoasset services in or to the United Kingdom must obtain FCA authorisation before the regime's commencement date. The FCA has published a series of consultation papers setting out the detailed rules that will govern the new regime, including CP25/14 (stablecoin issuance and custody), CP25/40 (regulated cryptoasset activities), CP25/41 (admissions, disclosures, and market abuse), CP25/42 (prudential requirements), and GC26/2 (application of the Consumer Duty to cryptoasset firms). The FCA intends to publish final policy statements before 25 October 2027.

Cryptoasset businesses operating in or targeting UK consumers face a material change in their obligations. Any firm that currently provides cryptoasset services on the basis of registration under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 alone must obtain full FSMA 2000 authorisation by the commencement date. Overseas entities marketing or dealing in cryptoassets to UK-based clients fall within scope. Firms that do not apply during the application window and cannot demonstrate registration under the anti-money laundering regime may be required to cease UK operations before the new regime takes effect.

A pre-application support service (PASS) will open on 1 July 2026 to assist firms preparing applications. The FCA has stated that firms currently registered under the Money Laundering Regulations may rely on that registration as a transitional measure until the new regime commences, provided they apply within the application window. Firms outside the application window that nonetheless wish to operate under FSMA 2000 authorisation face the standard gateway process. Specific provisions regarding admissions and disclosures, the market abuse regime, and prudential requirements remain subject to finalisation through policy statements expected in summer 2026.

Licentium advises clients across crypto regulatory matters, including FSMA authorisation strategy, FCA application preparation, and compliance programme design for the UK cryptoasset regime. We maintain a dedicated partner network covering UK financial services licensing and AML compliance. Contact us to discuss how the Cryptoassets Regulations 2026 affect your business. Our work spans cryptoasset licensing, VASP registration, stablecoin regulation, DeFi compliance, crypto exchange authorisation, AML/CFT for crypto businesses, and cross-border digital asset structuring.

Source: Financial Conduct Authority, "A new regime for cryptoasset regulation," https://www.fca.org.uk/firms/new-regime-cryptoasset-regulation (confirmed 30 March 2026); The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026, made 4 February 2026, referenced at https://www.fca.org.uk/firms/new-regime-cryptoasset-regulation.

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