A senior official with the U.K.’s finance regulator has announced that the country’s crypto industry has a little over a year to prepare for stricter regulations. Matthew Long, director of payments and digital assets at the Financial Conduct Authority (FCA), revealed in an interview with CoinDesk that a new authorization regime for crypto companies, known as the “impending gateway regime,” is scheduled for 2026.
This new regime will replace the current anti-money laundering (AML) rules and will require firms like Coinbase, Gemini, and Bitpanda to undergo a fresh process to obtain approval from the FCA. The FCA plans to release papers on various topics related to crypto this year, with the regime expected to go live in 2026 after final policy papers are published.
Since the FCA’s anti-money laundering register for firms opened in 2020, only 50 out of 368 applicants have been approved so far, indicating that many firms may need to start the process again.
Regulated activities
Upcoming legislation will define regulated activities, and companies engaging in those activities will need to seek authorization. Stablecoins, payment, exchange, and lending activities are expected to be included in the regulated activities.
Former Economic Secretary Tulip Siddiq stated in November that stablecoins will no longer fall under U.K. payments regulations, and the FCA plans to consult on draft rules for stablecoins this year.
The FCA is still deciding on the process that crypto companies will need to follow to become authorized under the new regime. Companies may need to go through a lengthy registration process, even if they already hold an existing license.
Transition
The FCA will communicate with firms about the authorization process before it goes live. The regulator plans to learn from Europe’s bespoke legislation for the crypto sector and the International Organization of Securities Commissions’ recommendations to ensure best practices are followed.
