UK regulator plans to start issuing licenses to crypto companies in 2026
The FCA's director of payments said the aim was to develop new rules for stricter regulation.
Romashka Shumba | Edited by Nikhilesh De Updated Mar 28, 2025 14:31 UTC Published Mar 28, 2025 7:30 UTC
Key points:
- The Financial Conduct Authority plans to start licensing new cryptocurrency companies next year after consulting with them and creating new regulations.
- Many companies have sought to be included on the FCA's current register for cryptocurrencies, but most have failed.
- Now, stablecoin issuers and crypto companies such as exchanges must prepare for stricter requirements.
The UK's crypto industry has just over 12 months to prepare for new, stricter regulations, according to a senior official at the UK's financial regulator.
Matthew Long, head of payments and digital assets at the FCA, told CoinDesk that the “forthcoming gateway regime,” scheduled for 2026, will effectively be a new authorization system for crypto businesses.
“We will create a gateway for issuing licenses. But of course we need to consult, develop these rules and get legislation passed to make that happen,” Long said.
The regime will be a significant step up from the current anti-money laundering (AML) regime. Companies such as crypto exchanges Coinbase, Gemini and Bitpanda will move from simply registering in the country to comply with AML to an authorisation regime with the new rules. This will require them to go through a new process to gain approval from the FCA.
The FCA plans to release papers this year on stablecoins, trading platforms, staking, prudential regulation of cryptocurrencies and more. The regime is expected to be launched after the publication of final policy papers in 2026, according to Long.
Since the AML register opened in 2020, the FCA has received 368 applications from businesses seeking to comply, but only 50 of these – 14% of applicants – have been approved so far. Many businesses may have to start all over again.
Details: UK financial regulator plans to introduce cryptocurrency regime by 2026
Regulated activities
Future legislation will define what will be considered regulated activity, the FCA's Long said. Firms carrying out such activity will need to be authorised.
In 2023, the previous UK government published documents arguing that regulated activities would likely cover the issuance of cryptocurrency and fiat stablecoins, as well as payment, exchange and credit services.
Former Economic Secretary Tulip Siddiq said in November that stablecoins would no longer be covered by the UK's payments rules as they had been. The FCA plans to consult on draft rules for stablecoins early this year.
“With stablecoins, we’re trying to take the best of the existing regulation in traditional finance, but stablecoins themselves are unique,” Long said. “There’s nothing exactly like it. We need to adapt the current regulation.”
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