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fca

The UK FCA will open the application channel for cryptocurrency company licenses in September 2026

According to Cointelegraph, the UK's financial regulatory body has set a timeline for a new cryptocurrency licensing regime, requiring relevant businesses to apply for full authorization before the framework takes effect.The Financial Conduct Authority (FCA) stated on Thursday that starting this autumn, Crypto Asset Service Providers (CASPs) can apply to enter the UK market under this framework, with the application period expected to open in September 2026, and the timeline will be confirmed in due course; before the new regime is implemented on October 25, 2027, the FCA's application channel will provide a limited window for processing applications.As planned, companies providing regulated crypto asset services in the UK, including those currently registered under the Anti-Money Laundering Regulations and payment-related frameworks, will need to obtain authorization under the Financial Services and Markets Act (FSMA). Companies already authorized by the FCA to conduct other regulated activities will need to change their existing permissions before the new regime takes effect; crypto companies relying on other authorized firms to approve financial promotions will need to obtain direct authorization from the FCA to promote products in the UK.The FCA requires crypto asset service companies to apply during a fixed window (at least 28 days and ending no later than 28 days before the new regime starts), with decisions expected to be made during this period before the new regime comes into effect. The legislative draft includes "transitional provisions" allowing companies to continue operating during the assessment period. Companies that miss the application window or are not authorized when the new regime starts will be subject to transitional rules, allowing them to continue operating existing products but restricting the launch of new products. Late applicants can still apply, but the FCA warns that the assessment time may be longer.

The UK FCA seeks opinions from the crypto industry to promote investment rule reforms and strengthen risk management

The UK's Financial Conduct Authority (FCA) has released a discussion paper and a consultation paper proposing several reforms aimed at "enhancing the investment culture in the UK," and is officially seeking feedback from the crypto industry.The FCA stated that it intends to adjust customer classification and rules related to conflicts of interest while "broadening consumer investment channels." The FCA pointed out that the poor investment performance on high digital participation (DEP) applications is almost entirely due to trading in crypto assets and contracts for difference (CFDs). Regulators emphasized that some users are making investments through "crypto asset proxy products" without limits, risk warnings, or suitability tests, posing significant potential risks.In the consultation paper, the FCA suggested new guidelines: for clients whose main investment history is concentrated in high-risk speculative assets or crypto assets, this should not be considered as evidence of "having professional investment capability," unless they have sufficient evidence to meet the professional investor threshold, including the ability to bear potential losses.The FCA stated that this reform aims to simplify the regulatory framework, placing clearer review responsibilities on institutions rather than relying on past "more arbitrary tests." The regulatory body requires businesses involved in the consultation or sale of crypto assets to submit feedback by February and March of next year.In recent years, the UK has gradually advanced the modernization of crypto regulation, including officially recognizing digital assets as "property" in 2024, providing clearer legal grounds for cases such as theft and bankruptcy. At the same time, the government is also assessing whether to ban donations of crypto assets to political parties.
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