Key Takeaways
- Only 10% of surveyed crypto firms consider themselves fully prepared for the UK’s incoming FCA regime.
- Applications open on Sept. 30, 2026, before the rules take effect on Oct. 25, 2027.
- Most firms plan to seek authorization, but Andy Burnham’s crypto policy remains unclear.
Most crypto firms serving British customers are not fully prepared for sweeping new rules that could force unapproved providers to withdraw from the country, according to preliminary research from digital assets platform Zumo.
The figures come as the industry faces renewed political uncertainty following Prime Minister Keir Starmer’s resignation, raising questions about whether his successor will treat crypto as an economic growth opportunity or a regulatory risk.
FCA Crackdown Could Force Crypto Firms Out of UK
According to Zumo, only 10% of surveyed providers considered themselves fully prepared for the incoming Financial Conduct Authority (FCA) regime.
Meanwhile, 60% were still assessing how their UK operating models would need to change.
Eight in ten rated the risk of missing the deadline as moderate or high — while 60% acknowledged that their current operations could leave them exposed to regulatory action.
The findings point to a potentially significant shake-up of Britain’s crypto market ahead of the FCA’s authorization opening on Sept. 30, 2026.
Losing access to British customers was the most commonly cited concern among the firms surveyed by Zumo.
The FCA’s application window will remain open until Feb. 28, 2027, before the full regime takes effect on Oct. 25 that year.
Regulation Will Boost UK Crypto, But Hurdles Remain
Providers that fail to apply will be forced to close their British operations before the regime begins.
Despite these risks, Zumo found that 90% of respondents intend to seek FCA authorization.
Meanwhile, 60% expect the framework to help them expand their UK businesses.
The same proportion believes regulation will increase customer interest in crypto as an asset class.
However, execution remains at an early stage.
Half of the firms were still planning their readiness programs. But three in ten said their biggest challenge was determining which rules applied to them.
Other obstacles included compliance costs and limited internal resources.
“Firms have decided the UK is worth the effort, but must overcome several obstacles to be ready in time,” Zumo founder and CEO Nick Jones said.
What Will the FCA’s New Crypto Rules Require?
The new FCA crackdown will apply regulations that are commonly associated with traditional financial services to crypto businesses.
Crypto firms are currently required to register for anti-money laundering supervision if their activities fall within the scope of the existing Money Laundering Regulations.
Under the new framework, registration will no longer be sufficient.
Exchanges, custodians, and staking providers conducting regulated UK activities will need full authorization under the Financial Services and Markets Act.
The new framework applies regulations commonly associated with traditional financial services to crypto businesses.
Firms will also face new capital and liquidity rules intended to ensure they can absorb losses.
Minimum capital requirements range from £75,000 for agents and businesses arranging crypto deals to £750,000 for firms dealing as principals.
Trading platforms, custodians, and staking providers generally face a £150,000 baseline, while qualifying stablecoin issuers must hold at least £350,000.
Parliament formally made the crypto regulations on Feb. 4, 2026, while the FCA published its final rules on June 30.
The timetable now runs as follows:
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Sept. 30, 2026: The FCA begins accepting authorization and variation-of-permission applications.
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Feb. 28, 2027: The protected application window closes.
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Oct. 25, 2027: The comprehensive regime takes effect.
Firms applying within the window can generally continue operating if the FCA has not reached a final decision by October 2027.
Starmer’s Departure Adds Another Layer of Uncertainty
The compliance deadline arrives as Britain’s crypto industry adjusts to Starmer’s departure and the expected arrival of Andy Burnham in Downing Street.
Burnham has secured overwhelming backing among Labor MPs and is expected to be confirmed as party leader on July 17 before becoming prime minister on July 20, according to the Associated Press.
While a change of prime minister will not automatically halt the FCA regime, a new government could influence whether crypto is included in Britain’s growth strategy.
“Leadership transitions create regulatory pauses, and in crypto that matters more than most sectors because the policy work is still live,” Raiku CEO and founder Robin Nordnes previously told CCN.
“The UK has been building a credible cryptoasset framework at HMT and FCA level, and that work doesn’t reset with a change at the top, but it does slow.”
Starmer’s government took a predominantly regulatory-first approach to the sector.
It also introduced a moratorium on crypto donations to political parties, citing concerns about foreign interference and the difficulty of tracing the source of funds.
Burnham has not yet outlined a detailed national crypto program during his leadership campaign, leaving the industry uncertain about whether he will maintain that approach.
“With the political reality of huge government debt increases due to interest rate rises, and with it the loss of more public services over time, Andy Burnham hasn’t really got a crypto agenda,” GRT Consulting Managing Director Rohit Sabhlok previously told CCN.
For firms preparing FCA applications, the immediate obligations remain unchanged regardless of who occupies Downing Street.
However, the combination of a small application window and uncertainty over Burnham’s attitude could determine whether the new rules attract or push more activity away from the country.
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Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
