CryptoSlate
Existing Bitcoin providers have until Feb. 28, 2027, to apply for UK authorization and qualify for temporary protection if their applications remain undecided when the new regime starts on Oct. 25, 2027. The Financial Conduct Authority opened the application window on Sept. 30. An eligible firm that applies on time can continue the activities covered by its application, including taking new business, while it awaits a decision.
Why it matters
Filing after February does not prevent a firm from applying. But a late applicant still awaiting a decision when the regime begins enters a narrower transition: it can perform newly regulated activities only as needed to fulfil existing contracts. It cannot enter new contracts with existing or new UK customers. An existing account alone does not preserve access to new business.
The distinction applies to activities including Bitcoin trading platforms, dealing, arranging transactions and custody. Protection for an on-time applicant is limited to the activities in its application and does not guarantee authorization. The FCA can also direct a firm into restricted run-off for reasons including consumer protection or criminal enforcement. Existing anti-money-laundering registration does not automatically become authorization under the new rules.
Market impact
For providers, the immediate risk is to customer access and the ability to take new business, not an automatic halt to Bitcoin services in February. A late applicant authorized before Oct. 25 avoids the pending-application restriction. A firm that has not applied before the regime begins must complete its UK run-off beforehand.
The temporary protections are bounded. The saving provision expires two years after commencement, while transitional run-off lasts at most two years. Firms entering run-off must notify the FCA and existing contract parties, including whether relevant customer protections have materially changed.
Frequently asked questions
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What does the Feb. 28, 2027, deadline determine?
It is the deadline for an eligible existing firm to apply and qualify for temporary protection if its authorization application remains undecided when the new regime begins.
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Can an on-time applicant keep taking new UK business while awaiting an FCA decision?
Yes, if it qualifies for the saving provision, it can continue the activities covered by its application, including new business. Filing does not guarantee authorization.
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Can a late pending applicant sign new contracts with existing UK customers?
No. If its application is still undecided when the regime begins, the transitional provision permits relevant activity only as needed to fulfil existing contracts. An existing account does not change that restriction.
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Does existing anti-money-laundering registration count as authorization under the new rules?
No. Existing anti-money-laundering registration does not automatically convert into authorization for the newly regulated crypto activities.
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What happens if a firm has not applied before the regime starts?
A firm with in-scope business that has not applied before Oct. 25, 2027, must complete its UK run-off before the regime begins.
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