UK Regulator Opens Crypto Permissions Route for Wholesale Banks Ahead of 2027 Rules

TL;DR: The Financial Conduct Authority has reminded wholesale banks that they can apply to extend their permissions into regulated cryptoasset activities under the UK’s new framework. Applications submitted by February 28, 2027 may qualify for continuity while decisions are pending, but the broader regime is not expected to begin until October 25, 2027. For years, Britain’s crypto debate has centred on exchanges and specialist firms. The next phase also concerns the banks that already serve financial markets. The Financial Conduct Authority has put those institutions on notice that the route into regulated crypto services is opening well before the rules themselves take effect. In its November 2 wholesale-banks supervisory update, the FCA said banks can submit a variation of permission to undertake activities brought inside the new regime. The regulator specifically named custody, operating trading platforms, dealing, arranging transactions, stablecoin issuance and staking as activities within the expanding perimeter. An application window, not a licence issued overnight The timing deserves attention. The application window opened on September 30, 2026. The FCA is encouraging whole...