The UK’s crypto sector is bracing for sweeping changes, as the Financial Conduct Authority (FCA) prepares to replace its current anti-money laundering (AML) registration system with a new authorisation regime by 2026.
The upcoming “gateway regime” may require all crypto firms operating in the UK — including major players like Coinbase, Gemini, and Bitpanda — to undergo a fresh approval process, regardless of whether they have already been approved under the existing AML framework.
According to FCA data, only 50 out of 368 applicants — just 14% — have secured AML registration since 2020, suggesting many companies will need to start over.
New regime coming in 2026
Matthew Long, director of payments and digital assets at the FCA, confirmed in a recent interview with CoinDesk that the gateway regime is scheduled to go live after final policy papers are published in 2026.
The new framework will move beyond money laundering compliance and expand into formal authorisation requirements for a broad suite of crypto services.
This includes exchange operations, stablecoin issuance, payments, and lending.
The regulator will conduct consultations and publish draft rules this year on stablecoins, staking, prudential crypto exposure, and trading platforms.
The current AML regime will remain in place during the transition.
However, the FCA has not yet decided whether firms already registered under AML rules will automatically receive new permissions or if they will be required to reapply.
Long noted that even companies that already hold approval may still need to apply for additional permissions under the new regime, depending on the scope of their operations.
Details of the exact application process will be announced prior to the regime’s launch.
Stablecoin rules under review
The UK’s approach to stablecoins will also be reshaped under the new regime.
Previously, the government proposed including stablecoins under existing payments regulations, but this plan has now shifted.
Former Labour Minister Tulip Siddiq stated in November that stablecoins will no longer be treated as traditional payment instruments.
Instead, the FCA aims to develop custom rules tailored to the unique structure of stablecoins.
Long said the regulator is working to adapt traditional finance regulations to better suit digital assets, noting that stablecoins are “ultimately unique” and not directly comparable to legacy financial products.
The FCA plans to release its consultation paper on stablecoin rules in early 2025, setting the stage for stablecoin issuance and payments to be formally classified as regulated activities.
These consultations will define how fiat-referenced stablecoins should be handled, including standards for custody, liquidity, and disclosure.
AML approvals may not carry over
The future gateway regime could force firms currently operating under FCA AML registration to reapply from scratch.
Since launching its AML register in 2020, the FCA has reviewed 368 applications and approved only 50. This 14% approval rate suggests the upcoming authorisation process could be even more selective.
With broader permissions attached to the new framework, firms aiming to expand their crypto offerings, such as lending or exchange services, may face new compliance hurdles.
The FCA intends to communicate the process with firms ahead of the official launch and has committed to activating the regime “as soon as humanly possible.”
While the timeline remains dependent on consultations and legislative approval, the 2026 target remains in place.
FCA looks to global standards
In designing the gateway regime, the FCA is looking to global frameworks for guidance.
Long said the regulator is studying the EU’s bespoke crypto rules and the 18 recommendations outlined by the International Organization of Securities Commissions (IOSCO).
A report from IOSCO on countries’ progress with these standards is expected soon.
By aligning with international best practices, the UK aims to create a robust regulatory environment that supports innovation while protecting consumers and financial stability.
The new rules will also define what counts as a “regulated activity” in the crypto space — a step expected to bring clarity to a fast-moving and often ambiguous sector.
The post New UK crypto gateway regime coming in 2026: here’s what we know appeared first on Invezz
https://invezz.com/news/2025/03/28/new-uk-crypto-gateway-regime-coming-in-2026-heres-what-we-know/
