UK FCA crypto regime preserves global liquidity, but 85% failed AML applications warn of rough rollout

The FCA's final crypto framework keeps the U.K. plugged into global venues instead of forcing local liquidity silos: overseas-issued stablecoins can circulate, and QCATP branches can connect to global exchange infrastructure. Authorization is the pain point: current AML registration already saw more than 85% of applicants rejected or pushed to withdraw, and the new FSMA regime adds Consumer Duty, operational resilience, prudential, governance, disclosures, and client-asset rules. Applications run from Sept. 30, 2026 to Feb. 28, 2027, while firms still need clarity on which overseas jurisdictions count as comparable before the regime expands on Oct. 25, 2027.

TLDR by @Benthic

Explore the topic

• Crypto
• UK