Any UK crypto exchange that fails to win a full licence from the Financial Conduct Authority (FCA) by October 25, 2027, will have to stop offering regulated crypto services. Applications opened on Wednesday.
Britain’s financial watchdog has only required most crypto firms to register for anti-money laundering checks until now. The new licence puts them under standards closer to those facing banks and brokers.
What the New Rules Mean for UK Crypto Exchange Users
The FCA opened its application window on September 30. Firms have until February 28, 2027, to apply before the rules take effect in October.
The rules reach beyond exchanges. They also cover firms that hold coins for customers, stablecoin issuers, and companies that arrange staking.
Each applicant will be judged on consumer protection, how it keeps customer assets safe, market integrity, and financial resilience. The watchdog says approval is not automatic, and firms that fall short will be refused.
An existing anti-money laundering registration will not convert into a license. Every firm has to apply from scratch.
“The UK’s new crypto regime will give consumers greater protections and firms a clear framework to operate in. Firms can now apply for authorization and start preparing for regulation,” said Dominic Cashman, director of authorization at the FCA.
Which Exchanges Could Close and When
Firms that apply on time can keep serving customers, including new ones, while the FCA decides. The regulator expects to rule on those applications before October 2027.
Late applicants get no fast track, according to the FCA’s gateway guidance. Without a license when the rules start, they can only honor existing contracts. They cannot sign new customers or new deals with current ones.
Firms that never apply must wind down their UK business before October 25, 2027. Otherwise, they risk carrying on unauthorised financial business, the FCA warns.
UK Crypto Firms Face Pressure From Banks Too
The licence window opens as British lenders and crypto firms clash over payments. Last week, the banking lobby ejected Coinbase from UK Finance, though the exchange can appeal.
Earlier approvals already came with limits. Robinhood’s UK crypto approval in August let it pass orders to others, but not hold customer coins.
The next five months will show which exchanges judge a full UK licence worth the cost.