Lynn Johannson, Advisor, Sustainability and ESG
January 4th, 2024
Lynn Johannson, President of E2 Management Corporation and Catalyst for THE Collaboration
In a care[...]
UK FCA Plans Full Crypto Licensing Regime by 2026
UK Crypto Regulation | April 2, 2025
Image: FCA Crypto Roadmap (Financial Conduct Authority)
FCA Confirms UK Crypto Registration to Begin in 2026 Following Legislation this Year
In a recent interview with CoinDesk, FCA Director Matthew Long said that the UK intends to officially start licensing crypto firms under a comprehensive framework in 2026. It's contingent on consultations and final rule-making this year in 2025, and then being approved by Parliament.
Current Registration Landscape
As of April 2 2025, the FCA has registered 51 cryptoasset firms under a temporary anti-money laundering (AML) framework to ensure basic compliance until a more comprehensive framework is developed. Bookmark the above link if interested in tracking and verifying the registration status of crypto firms in the UK. The resource page is managed and kept up-to-date by the FCA. Crypto businesses were given ample time to register for the temporary regime including an extension.
Transitioning to New Comprehensive Framework
The new UK crypto licensing rules will go beyond just anti-money laundering checks. They’re expected to cover areas like how crypto is stored (custody), how tokens are listed on platforms, how market abuse is prevented, and how consumers are protected. This plan builds on two key FCA documents published in late 2024.
First in November 2024, the FCA published a Crypto Policy Roadmap outlining the FCA’s policy direction and timeline for implementing its comprehensive crypto framework. Then, there's a Discussion Paper DP24/4 (December 2024) that evaluated options for regulating cryptoassets with a focus on market abuse rules and establishing disclosure standards. Together, along with numerous updates to industry, its clear that the FCA is aiming to create transparent and fair crypto regs that support innovation while keeping the market safe and trustworthy.
The National Crowdfunding & Fintech Association (NCFA) has tracked and reported the FCA's progress towards crypto regulation by 2026 including initiatives like stablecoin rules and the Digital Securities Sandbox. Learn more: "UK’s Regulatory Crypto Roadmap from Sandbox to Mainstream
Implications
By providing clear regulatory guidelines, the FCA aims to enhance consumer confidence and attract legitimate crypto businesses.
See: UK vs. Canada: A Tale of Two Different Crypto Consumers
It aligns the UK with global efforts to standardize crypto regulation, and continues to position the UK competitively among jurisdictions like the European Union and the United States.
Conclusion
Given that the UK is entering a new phase of crypto regulation, with full licensing expected to begin in 2026, crypto firms looking to operate in the UK should stay engaged with the FCA to prepare for the new rules, and implement the required compliance and governance procedures.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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