UK crypto guidance sets hard deadline for offshore firms

Britain’s Financial Conduct Authority published perimeter guidance on Wednesday, two weeks before the application window for crypto authorization opens. The rules clarify which activities require FCA approval and how the incoming regime applies to firms outside the UK.

The guidance covers issuing qualifying stablecoins, running trading platforms, dealing and arranging deals, safeguarding cryptoassets, and arranging staking. Applications can be submitted from September 30, 2026, to February 28, 2027, with the regime taking effect on October 25, 2027. Skadden confirmed these dates in its analysis of the FCA’s consultation process.

Overseas firms dealing with, arranging for, or safeguarding cryptoassets for UK retail consumers count as carrying on business in the UK. Michelle Kirschner, a partner at Gibson Dunn, noted that the overseas persons exclusion firms normally rely on "is simply not available for these activities." She added, "If a firm wants direct access to UK retail customers, it must come onshore and get authorised."

Missing the February 2027 deadline carries specific consequences. Thomas Brown, a partner at Shoosmiths, explained that applying within the window triggers statutory saving provisions allowing firms to operate while the FCA assesses them. Without that cover, a firm not yet authorized by October 2027 is "likely to be restricted to servicing existing contractual arrangements and may be unable to onboard new customers or enter into new business."

The FCA declined to define "identifiable controlling entity" for DeFi protocols, deferring the hardest perimeter questions to case-by-case assessment. Kirschner said these issues "have been deferred by the FCA rather than resolved," noting the gap reflects a perimeter problem no major jurisdiction has yet cracked.

David Geale, the FCA’s executive director of consumers, payments and competition, stated, "This guidance gives firms the clarity they've asked for so they can prepare with confidence." The guidance follows a rulebook finalized in June, after legislation in February and consultation in April.