The update will create significant time pressure for firms seeking UK authorisation.
By Stuart Davis and Gabriel Lakeman
On 8 January 2026 the FCA published an update on the cryptoasset gateway (the Gateway) for firms seeking approval under the future regulatory regime for cryptoasset activities.1 The timings set out by the FCA will create significant time pressure on firms to prepare and submit applications earlier than many stakeholders in the industry anticipated.
Many stakeholders had been expecting that the FCA would not open the application window under the Gateway until close to the commencement of the new regime (25 October 2027). This would allow time for firms to prepare and submit applications in an orderly fashion, and then benefit from transitional provisions to continue servicing customers under existing rules until their applications are determined. However, the FCA announced that the application window will open in September 2026, but has not yet stated when the Gateway will close. In addition, the FCA has noted that it will aim to determine applications submitted via the Gateway ahead of commencement of the new regime, suggesting submissions will need to be made significantly in advance of the commencement date.
Failure to submit an application during the application window will result in a firm losing the benefit of the transitional regime, thereby facing cliff-edge risk when the regime comes into force (subject to a limited contractual run-off scheme). The FCA has only recently published consultation papers on the final rules which will constitute the full regime, and has not yet published application forms. However, the FCA typically expects firms to be “ready, willing and organized” to provide services at the time of submission. This will create significant time pressure on firms looking to be regulated in the UK.
In light of the above, firms should now prioritise consideration of their approach to UK cryptoasset authorisation and start preparations early in 2026.
Follow Latham’s UK Cryptoasset Regulatory Tracker for up-to-date information, analysis, and source links to help cryptoasset businesses understand and respond to the latest regulatory developments.