How to Get FCA Crypto Registration in the UK (2025 Guide)

If you want to operate a crypto business in the United Kingdom, FCA registration is mandatory. This is not a formality or a checkbox. The Financial Conduct Authority demands that firms demonstrate real controls, real governance, and real accountability. The UK is not a light-touch jurisdiction. It is one of the most exacting regulatory environments in the world.

At Shift Markets, we have helped companies launch in over 50 jurisdictions. Few markets rival the UK in scrutiny. While the FCA does not license crypto companies in the traditional sense, its registration process under the Money Laundering Regulations (MLRs) is one of the most difficult approvals to secure — and one of the most important.

What Is FCA Crypto Registration?

FCA crypto registration is a legal obligation for any firm offering cryptoasset services to UK residents. It is not a license but it operates as a regulatory threshold. If your firm cannot meet the FCA’s standards for anti-money laundering and counter-terrorist financing, you are not permitted to operate.

This applies to businesses that exchange cryptoassets or provide custodial wallet services. The requirements cover governance, compliance, risk management, and operational oversight. Registration confirms that your systems can prevent financial crime, protect users, and satisfy regulators.

No registration means no business. You cannot market to UK customers, handle fiat, or hold custody of user funds without FCA approval.

Who Needs to Register and Why

Any company serving UK residents with crypto services must register, whether based in the UK or abroad. This includes domestic exchanges, offshore firms targeting the UK market, and custodial wallet providers. It enables banking relationships, satisfies institutional counterparties, and establishes operational credibility. FCA registration is how serious firms prove they belong in regulated markets.

The Registration Process: Step by Step

FCA registration is not a one-time form submission. It is a multi-stage review that tests whether your business can withstand regulatory scrutiny. The process begins long before you log in to the application portal. Here are the steps for registering:

Step 1: Build a Real Compliance Program

You must establish a comprehensive AML framework. This includes internal controls, transaction monitoring, risk assessments, and the appointment of key personnel such as a Money Laundering Reporting Officer (MLRO).

Step 2: Prepare Core Documentation

You will be required to pay an application fee at the time of submission. Your business plan must be detailed, specific to your operational model, and address all areas set out in the FCA’s guidance, including your governance, financial projections, risk assessment, and compliance systems. Generic language will raise red flags.

Step 3: Submit the Application via FCA Connect

You must submit your application through the FCA’s Connect system. Registering an account is the first step. Once submitted, the FCA assigns a case officer to your application. If your materials are complete, the review period typically takes up to 3 months for crypto-related firms. However, in practice, the FCA almost always issues follow-up questions. Incomplete or low-quality submissions can delay review for up to 12 months.

Step 4: Respond to Ongoing FCA Inquiries

Once a case officer is assigned, you should expect a live dialogue. The FCA may request further documentation, schedule calls, or ask detailed questions about your business. Calls may be recorded as part of the review process. If your responses are incomplete or suggest your team is unprepared, the FCA may recommend withdrawal rather than refusal. This allows firms to regroup and reapply without a formal rejection on record.

Step 5: Maintain and Defend Your Registration

Approval is not the end of scrutiny. Registered firms must submit ongoing reports, notify the FCA of material changes, and continuously uphold the standards that earned their registration.

What Happens After a Decision

The FCA has rejected or withdrawn over 85% of crypto registration applications to date. Most failures stem from leadership teams that lack regulatory experience, compliance frameworks that are either generic or unfit for the business model, and submissions that fall apart under scrutiny. The review process is rigorous by design. If your business is not ready, the outcome will reflect that.

If You Are Approved

If your registration is granted, the FCA will issue a Firm Reference Number (FRN) and add your business to the Financial Services Register. You will receive written confirmation of your permissions and any limitations imposed. Newly registered firms are expected to maintain the standards outlined in their application. The FCA’s Early and High Growth Oversight team may reach out to offer support, particularly if your firm is scaling or deploying new technology.

If Your Application Is Rejected

If the FCA refuses your application, you will be notified in writing with the reasons for the decision. The refusal becomes part of your firm’s regulatory history. Your application fee will not be refunded. A rejection does not bar future applications, but it significantly raises the scrutiny for any subsequent attempt.

Withdrawing Your Application

Firms that recognize during the review that they are not ready can choose to withdraw their application. This is often a strategic decision when material revisions are required. The FCA may also suggest withdrawal in cases where the deficiencies are clear but correctable. While your application fee will not be refunded, withdrawal avoids a formal refusal and allows you to reapply once your materials and controls are properly aligned.

How Shift Markets Helps Operators Succeed

FCA registration is not a startup task. It is a foundational requirement for serious operators. At Shift Markets, we provide the infrastructure and operational guidance needed to meet regulatory expectations from day one. Our platform is built with compliance in mind, not added on afterward. We support firms pursuing FCA registration with exchange infrastructure that aligns to governance, reporting, and operational control requirements. We also advise on structuring your compliance architecture to satisfy both regulatory and banking due diligence.

If you are planning to serve the UK market, your controls must be as credible as your technology. Find out how Shift Markets helps you build both and reach out today.