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

What happened

The Financial Conduct Authority said wholesale banks can apply to extend their permissions to cover regulated cryptoasset activities, including custody, trading platforms, dealing, stablecoin issuance and staking. Applications submitted by February 28, 2027 may qualify for continuity while decisions are pending; the wider regime is planned to begin October 25, 2027.

Confirmed

Global impact / market context

The early application route gives wholesale banks time to seek approval before the wider rules begin. If approved, banks could offer regulated crypto services, potentially bringing custody, trading and other activity within existing financial institutions and creating compliance work and costs ahead of the start date.

Analyst inference

The article describes a shift in regulatory attention from exchanges and specialist firms toward banks serving financial markets. The permissions route opens before the regime starts, so banks face a period in which applications and preparation may shape which services they can provide later.

Analyst inference

What to watch

1. Whether wholesale banks submit applications by February 28, 2027, the FCA’s encouraged deadline for potentially qualifying for continuity while permission decisions are pending. Confirmed
2. Whether the FCA grants permission for activities such as custody, trading platforms, stablecoin issuance or staking; permission would determine which services each bank can offer. Analyst inference
3. Whether the planned October 25, 2027 start date changes, since a delay or earlier start could alter banks’ preparation timelines and related compliance spending. Analyst inference

Evidence

• newsbtc.com