FCA Clears Crypto Rulebook, but UK Banks Can Still Block Transfers

FCA Sets Oct. 2027 Start for New UK Crypto Authorization Regime

The United Kingdom has given crypto companies a much clearer answer to a question that has hung over the industry for years: exactly when does a digital-asset business become regulated?

The Financial Conduct Authority published its final cryptoasset perimeter guidance on Sept. 16. From Oct. 25, 2027, businesses conducting covered activities in the U.K. will generally need FCA authorization unless an exemption or transitional arrangement applies.

The rules cover stablecoin issuance, crypto trading platforms, dealing and arranging transactions, custody and staking. They also affect overseas firms serving U.K. customers and traditional financial institutions moving into crypto.

Crypto Firms Have Two Weeks Before the Gateway Opens

The timing matters.

Applications open on Sept. 30, 2026, with the transition window closing Feb. 28, 2027. Existing registrations will not automatically convert into authorization under the new regime.

David Geale, the FCA’s executive director of consumers, payments and competition, said the regulator wants firms to understand where they stand before applying.

“We are building a crypto regime that firms, consumers and international partners can trust,” Geale said. “This guidance gives firms the clarity they’ve asked for so they can prepare with confidence.”

The FCA also plans further consultation on perimeter changes following amendments to the underlying legislation.

Banks Can Still Keep the Crypto Door Shut

Regulatory approval, however, will not guarantee frictionless access to the U.K.’s banking system.

Nine of the 10 largest U.K. retail banks currently block or limit some crypto-related transactions, according to The Banker. The FCA is not expected to compel lenders to remove those restrictions when the new regime begins, leaving individual banks to determine their risk appetite.

The government has previously said banking decisions remain largely commercial, while also stating that licensed crypto companies should not face restrictions merely because they operate in the sector.

For exchanges and customers, that creates an important contradiction: crypto businesses may soon have a full FCA license but still struggle with banking access.

Parliament Is Turning up the Pressure

That issue has now reached Parliament.

The House of Lords recently backed Amendment 88 to the Financial Services and Markets Bill, requiring the Treasury to develop a national digital-assets strategy covering crypto, stablecoins, tokenization and access to banking and payment services. The measure passed 194-138.

The bill has since moved to the House of Commons, so the provision is not yet law.

For the U.K. crypto market, the FCA guidance removes one large source of uncertainty. The next test is whether regulatory legitimacy translates into something equally important: practical access to the financial system.