UK crypto firms urged to learn from Europe’s MiCA licensing challenges

With the FCA's application window set to close on February 28, executives who went through MiCA say slow and unpredictable approvals are the real risk UK crypto firms have a deadline circled in red: 11:59 p.m. on February 28, 2027. That is when the Financial Conduct Authority’s authorization gateway closes for firms that want to keep running, or start running, regulated cryptoasset businesses under the country’s new regime. The UK timeline and the fine print The FCA opened its application window on September 30, 2026. That gives firms roughly five months to get their paperwork in. The new regime, which sits under the Financial Services and Markets Act (FSMA), takes effect on October 25, 2027. The detail many firms may have hoped to avoid is this one. Existing registrations under the Money Laundering Regulations, or MLR, do not automatically convert into FSMA authorization. Firms already registered with the FCA for anti-money laundering purposes must either apply from scratch or modify existing permissions to fit the new framework. The new process also asks different questions. The old MLR regime focused on financial crime. The FSMA regime puts consumer protection and market integri...