2026 focus is on updated requirements (including CDD) with 2027 set as the deadline for comprehensive crypto authorization and structural regulation.
Money Laundering Regulations 2017
The FCA plans to extend the High-Level Standards in the FCA Handbook to cryptoasset firms in line with FSMA-authorized entities.
Under the proposals, all firms wishing to carry out regulated cryptoasset activities will be required to obtain FCA authorization.
The draft SI proposes changing the registration and change in control thresholds for cryptoasset businesses to align with FSMA.
New proposals aim to reduce ambiguity and lead to a reduction in over-compliance or inconsistent application.
The regulator has observed common weaknesses among MLR Annex I firms and indicates that it is increasing its scrutiny of this area.
The regulator is working to “identify and disrupt unregistered crypto businesses operating in the UK”.