UK FCA Opens Crypto Licensing Gateway Under New Yield and Safeguarding Rules

The UK Financial Conduct Authority opened its crypto regulatory authorization gateway on September 30, 2026, ahead of full regime implementation on October 25, 2027. Applications close on February 28, 2027. Under finalized rules, cryptoassets like Bitcoin pledged as borrowing collateral must remain protected under safeguarding trusts or CASS 17 requirements. In contrast, assets placed in active yield-generating lending arrangements will be exempt from safeguarding trust protections, leaving participants with unsecured contractual claims upon platform insolvency. Regulated crypto activities will not receive coverage under the Financial Services Compensation Scheme.