FCA Clears Crypto Rules, UK Banks Still Block Transfers

What the New Rules Actually Cover

The FCA released its final cryptoasset perimeter guidance on September 16, clarifying which businesses will need authorization under the UK’s new regulatory framework. Starting October 25, 2027, firms conducting covered activities in the UK must generally obtain FCA authorization, though exemptions and transitional arrangements may apply.

The scope is broad. Covered activities include:

• Stablecoin issuance
• Crypto trading platforms
• Dealing and arranging transactions
• Custody services
• Staking services

Overseas firms serving UK customers and traditional financial institutions entering the crypto space are also affected. Applications for authorization open on September 30, 2026, and the transition window closes on February 28, 2027. Existing registrations will not automatically convert into the new authorization.

David Geale, the FCA’s executive director of consumers, payments and competition, said the regulator aims for a regime that firms, consumers, and international partners can trust. He said the guidance offers firms the clarity they’ve asked for.

The Banking Problem Nobody Fixed

Despite this regulatory clarity, a major hurdle remains untouched. UK banks can still restrict customers from sending money to crypto platforms, and nothing in the new guidance changes that.

According to The Banker, nine out of the 10 largest UK retail banks currently block or limit some crypto-related transactions. The FCA is not expected to force banks to lift these restrictions. Individual banks will continue setting their own risk appetite, which means a licensed, fully authorized crypto business can still get its transfers rejected by a high street bank.

Lords Push Treasury on Banking Access

The banking access issue has already reached Parliament. The House of Lords recently backed Amendment 88 to the Financial Services and Markets Bill, which would require the Treasury to develop a national digital assets strategy covering crypto, stablecoins, tokenization, and access to banking and payment services.

The amendment passed with 194 votes to 138. The bill has now moved to the House of Commons for further consideration, so this provision is not yet law.

Hashlytics Take

The FCA just did the hard regulatory work, and it still won’t be enough on its own. Getting a license is supposed to be the barrier. Instead, it’s turning into a formality that hands firms a certificate they can’t fully use, since nine of the ten biggest UK banks will still treat them as a risk regardless of what the FCA says. The real test isn’t whether the FCA’s guidance holds up. It’s whether Amendment 88 survives the Commons and actually forces banks to treat authorized crypto firms like the licensed businesses they now are.