The framework will introduce requirements covering consumer protection, customer asset safeguarding, market integrity and financial resilience.
Firms that want to continue operating in the UK will need to apply by Feb. 28, 2027, with the new regime scheduled to take effect on Oct. 25, 2027.
Existing firms that submit applications during the transition period can continue providing crypto asset services, including taking on new customers, while their applications are under review if the FCA has not reached a decision by the start of the new regime.
The FCA said firms must demonstrate that they meet its standards to receive authorization. The regulator is offering pre-application support and webinars, while firms that do not meet the requirements will be unable to continue offering regulated cryptoasset services in the UK.
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