Frequently asked questions
Straight answers to the questions firms ask us most often before starting a UK regulatory process.
Yes. Cryptoasset businesses carrying on relevant activity in or from the UK must register with the FCA under the Money Laundering Regulations. Registration is assessed on the strength of your AML and financial crime systems, governance, and the fitness and propriety of senior management.
The FCA has reported that the large majority of cryptoasset registration applications have been rejected or withdrawn rather than approved. The common failures are financial crime controls that exist on paper but not in practice, unclear ownership and group structures, and senior management without demonstrable experience of operating under UK regulation.
The UK is moving from the current registration-only regime to full authorisation for cryptoasset firms. Under the published FCA timetable the authorisation gateway opens on 30 September 2026, with the initial submission window closing on 28 February 2027. Firms should plan on the assumption that the evidential bar is higher than registration.
An authorised electronic money institution can issue and redeem e-money and hold customer funds as stored value, and may also provide payment services. A payment institution can only execute payment services and cannot issue stored value. E-money firms face higher initial capital requirements and a wider safeguarding obligation.
Firms must protect relevant customer funds so they are returnable if the firm fails, using segregation or an insurance or guarantee alternative under the Payment Services Regulations and Electronic Money Regulations. The FCA has strengthened its expectations on reconciliation, record keeping and governance, and treats safeguarding failures as a serious supervisory issue.