London. The UK's financial regulator, the Financial Conduct Authority (FCA), has announced the launch of a support programme for cryptocurrency companies, designed to help them prepare for the coming into force of stringent new requirements under the Financial Services and Markets Act (FSMA). This move marks a turning point in the United Kingdom's approach to digital assets.
From 11 May, firms working with cryptoassets can request preliminary meetings with FCA representatives through a dedicated pre-application support service (PASS). These free consultations are intended to reduce the risk of authorisation refusals and help businesses transition smoothly to operating under new, stricter standards.
New Rules from 25 October
The full launch of the new cryptoasset regulatory regime is scheduled for 25 October 2026. However, the roadmap for these changes includes several key dates:
· From 11 May - companies can begin requesting preliminary meetings via the PASS portal.
· July - the start of the consultation meetings themselves.
· 30 September - the opening of the window for submitting formal authorisation applications.
· 25 October - the full entry into force of the new regulatory regime.
The new FSMA system fundamentally changes the landscape of the UK crypto industry. Whereas previously the activities of many crypto firms operated in a "grey area" or were only fragmentarily regulated, now areas such as trading platforms, custodial services (storage of digital assets), and digital asset operations will be fully integrated into the existing regulatory perimeter.
This means that crypto companies will need to obtain full authorisation, agree to ongoing supervision by the FCA, and comply with obligations similar to those applied to traditional financial institutions - banks, brokerages, and asset managers. This includes requirements regarding capital adequacy, transparency of reporting, safeguarding of client funds, and anti-money laundering (AML) compliance.
The PASS Service
Preliminary meetings through the PASS service are not a new initiative for the FCA - they are an established and proven tool that the regulator has used for years in other sectors of the financial market. However, for the crypto industry, their launch holds particular significance.
The crypto sector has traditionally been perceived by regulators worldwide as riskier, more volatile, and more difficult to control. Many projects have decentralised structures, international jurisdictions, and innovative business models that do not always fit within conventional frameworks. As a result, the rejection rate for crypto company authorisations in past periods has been significantly higher than in other sectors.
The PASS service allows companies before submitting a formal application to:
1. Clarify the FCA's expectations. The regulator can clearly explain which risk management systems, internal controls, and operational resilience measures it considers mandatory.
2. Identify weaknesses. A crypto firm gains the opportunity to learn in advance about potential problems in its structure or business model.
3. Ask specific questions. For example, regarding the application of rules to staking, decentralised finance (DeFi), or tokenised assets.
4. Save time and resources. High-quality preparation at an early stage sharply reduces the risk of lengthy delays or outright refusal of authorisation.
The FCA explicitly states that early dialogue with regulator's staff will help crypto companies better understand the requirements in the areas of corporate governance, risk control, compliance standards, and operational continuity (operational resilience).
The UK's Mature Approach
The FCA's move demonstrates a fundamentally different approach compared to many other jurisdictions. Instead of squeezing the crypto industry through harsh bans or, conversely, creating a "green corridor" with minimal controls, the British regulator is choosing a path of integration.
On the one hand, the new FSMA rules strictly require crypto firms to comply with all consumer protection standards that have long been in place in traditional finance. This includes client asset segregation, risk insurance, stress testing, and mandatory breach reporting.
On the other hand, the creation of the PASS mechanism and the holding of preliminary meetings sends a clear signal to the market: "We are not against innovation - we want it to be safe and transparent." The FCA is actively helping companies prepare for the introduction of the new regime, which will come into force more than a year from now, giving businesses a comfortable window to modernise their processes.
Of particular note is the FCA's separate guidance on integrating crypto funds into mainstream market infrastructure. This means that institutional investors, such as pension funds and insurance companies, will be able to access digital assets through familiar, regulated channels. This in turn opens the door for large capital that has previously avoided the crypto market due to regulatory uncertainty.
Implications for the Market
For crypto companies operating in the UK or planning to enter the British market, a period of serious transformation is beginning. Those unwilling to invest in compliance, risk management, and the development of transparent structures will face either refusal of authorisation or a move to other jurisdictions. Those that successfully navigate this path will gain access to one of the largest and most solvent financial markets in the world, with clear and stable rules.
For consumers and investors, the new FCA rules mean a higher level of protection. They can be confident that authorised crypto firms follow the same safety standards as traditional banks or brokers. This is critically important following a series of high-profile crypto platform bankruptcies (such as FTX or Celsius), which demonstrated the dangers of a lack of robust regulation.
Finally, on a global scale, the FCA's initiative sets an example to follow. While the United States continues to debate which agency should oversee cryptocurrencies, and some countries simply ban them outright, the United Kingdom is offering a pragmatic, detailed, and simultaneously flexible approach. The launch of PASS is confirmation that London is serious about maintaining its status as a global financial centre in the era of tokenisation and digital assets.