“Do You Need FCA Authorisation?”
Use this top to bottom.
The moment you hit YES, FCA authorisation is required (unless a narrow exemption applies).
STEP 1: ARE YOU DEALING WITH A “QUALIFYING CRYPTOASSET”?
Question:
Is the cryptoasset you deal with fungible and transferable?
- Examples: BTC, ETH, stablecoins, most exchange-traded tokens
- Excluded: pure utility tokens usable only with the issuer, CBDCs, e-money
YES → Go to Step 2
NO → Outside this regime (but check other UK laws)
STEP 2: DO YOU TOUCH UK CONSUMERS?
Question:
Do you directly or indirectly provide services to a UK consumer?
This includes:
- UK retail users
- UK residents using your platform
- Marketing or onboarding UK individuals
YES → Go to Step 3
NO → You may still be in scope if acting as intermediary (Step 3 still applies)
Important:
Being offshore does not exclude you if UK consumers are involved.
STEP 3: WHAT ACTIVITY DO YOU PERFORM?
A. DO YOU OPERATE A CRYPTO EXCHANGE?
Question:
Do you operate a system that brings together multiple buyers and sellers of cryptoassets?
Includes:
- Centralised exchanges
- Order books
- Platforms matching trades
- P2P platforms with rules, escrow, or fees
YES → FCA licence required
(Regulated activity: Operating a qualifying cryptoasset trading platform)
B. DO YOU HOLD OR CONTROL USER CRYPTO?
Question:
Do you control private keys or have the ability to move crypto assets for users?
Includes:
- Custody wallets
- MPC setups
- Escrow
- “Non-custodial” services where you can trigger transfers
YES → FCA licence required
(Regulated activity: Safeguarding of qualifying cryptoassets)
C. DO YOU DEAL IN CRYPTO AS PRINCIPAL?
Question:
Do you buy or sell crypto from your own balance sheet?
Includes:
- Market making
- OTC desks
- Spread-based dealing
- Quoting buy and sell prices continuously
YES → FCA licence required
(Regulated activity: Dealing as principal)
D. DO YOU DEAL IN CRYPTO AS AGENT?
Question:
Do you execute trades on behalf of users?
Includes:
- Brokers
- Apps routing user orders
- Execution services
YES → FCA licence required
(Regulated activity: Dealing as agent)
E. DO YOU ARRANGE CRYPTO TRANSACTIONS?
Question:
Do you introduce, structure, or facilitate crypto trades even if you do not execute them?
Includes:
- Deal arrangers
- Matching services
- Platforms that bring parties together
- Investment platforms pointing users to execution
YES → FCA licence required
(Regulated activity: Arranging deals in cryptoassets)
F. DO YOU ISSUE A STABLECOIN?
Question:
Do you issue, redeem, or maintain the value of a fiat-referenced stablecoin?
Includes:
- Issuers
- Redemption managers
- Groups controlling stabilisation mechanisms
YES → FCA licence required
(Regulated activity: Issuing qualifying stablecoin in the UK)
G. DO YOU OFFER STAKING SERVICES?
Question:
Do you arrange or facilitate staking for users?
Includes:
- Pooled staking
- Delegated staking
- Liquid staking
- Validator services offered to users
YES → FCA licence required
(Regulated activity: Qualifying cryptoasset staking)
STEP 4: ARE YOU CLAIMING TO BE “DECENTRALISED”?
Question:
Is there a controlling person, entity, or governance structure?
If:
- You set parameters
- You upgrade contracts
- You control fees or access
- You market or operate the service
Then decentralisation does NOT remove licensing requirements.
If there is control → Licence required
STEP 5: ARE YOU RELYING ON AN EXEMPTION?
Narrow exclusions exist, but they are limited.
You do NOT need a licence only if all apply:
- You only introduce users to an authorised FCA crypto firm
- You do not control assets
- You are not remunerated by the service provider
- You do not hold yourself out as providing crypto services
If any of these fail → Licence required
STEP 6: TRANSITIONAL POSITION (CRITICAL)
If you are already operating:
- You must apply within the FCA’s application window
- You may receive a temporary exemption to run off existing contracts
- After the transition period, operating without authorisation becomes illegal
SUMMARY TABLE
| Activity | FCA Licence Required |
| Crypto exchange | Yes |
| Custody / wallets | Yes |
| Brokerage | Yes |
| OTC / market making | Yes |
| Token issuance (stablecoins) | Yes |
| Staking | Yes |
| DeFi with control | Yes |
| Pure software, no control | Possibly no |
| Pure introductions only | Possibly no |
PRACTICAL TAKEAWAY
If your crypto business:
- Touches UK consumers
- Touches user assets
- Touches execution, pricing, or yield
Assume you need an FCA licence unless proven otherwise.
This regime is activity-based, not branding-based.