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The UK Financial Conduct Authority (FCA) has established a timeline for its new cryptocurrency licensing regime, with a focus on compliance with the Crypto-Asset Travel Rule (CFT). The application window for Crypto-Asset Service Providers (CASPs) will open in September 2026, and final decisions will be made before the framework becomes effective on October 25, 2027. Firms must apply under the Financial Services and Markets Act (FSMA) to operate legally. A transitional period will allow ongoing operations during the review process. Those missing the initial application window may still apply but could experience delays. The FCA's approach is aligned with broader global initiatives, including the EU's Markets in Crypto-Assets (MiCA) regulation.

According to a ChainCatcher report citing Cointelegraph, the UK financial regulator has set a timeline for a new cryptocurrency licensing regime, requiring relevant businesses to apply for full authorization before the framework comes into effect. The UK's Financial Conduct Authority (FCA) stated on Thursday that starting this autumn, crypto-asset service providers (CASPs) can apply to enter the UK market under the new regime. The application period is expected to open in September 2026, with the timeline to be confirmed in due course. Before the new regime is implemented on October 25, 2027, the FCA will provide a limited window for processing applications.According to the plan, all companies providing regulated crypto-asset services in the UK, including those currently registered under the Anti-Money Laundering Regulations and payment-related frameworks, will need to be authorized under the Financial Services and Markets Act (FSMA). Companies already authorized by the FCA for other regulated activities must amend their existing permissions before the new regime is implemented. Crypto companies that rely on approvals from other authorized firms for financial promotion activities must obtain direct authorization from the FCA to promote products in the UK.The FCA requires crypto-asset service providers to apply during a fixed window period (at least 28 days and no later than 28 days before the new regime is launched), with applications expected to be decided before the new regime takes effect. The draft legislation includes "transitional provisions" that allow companies to apply for an assessment period to continue operating. Companies that miss the application window or are not authorized when the new regime is launched will be subject to transitional rules, allowing them to continue operating existing products but restricting the launch of new ones. Late applicants can still apply, but the FCA warns that the assessment period may be longer.Source:Show originalDisclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.