Daily · Crypto Regulation and Market Access · September 30, 2026

Key points

UK Crypto Authorisation Window Opens

The Financial Conduct Authority (FCA) opened the application window for crypto firm authorisation on 30 September 2026. This move brings crypto firms operating in the UK under full FCA regulation, with standards covering consumer protection, safeguarding, market integrity, and financial resilience.

Firms intending to continue operating in the UK must apply by 28 February 2027, ahead of the new regime coming into force on 25 October 2027. The FCA published its final crypto rules and guidance in June 2026. Existing firms that apply during this period can continue providing cryptoasset services, including taking on new business, while their application is being assessed, provided a decision has not yet been made.

Authorisation is not automatic; firms must clearly demonstrate they meet the FCA's requirements. Dominic Cashman, director of authorisation at the FCA, stated that the new regime will give consumers greater protections and firms a clear framework to operate in. The FCA is supporting firms through pre-application discussions and webinars.

ESMA Proposes MiCA Simplifications

ESMA responded to the European Commission's public consultation on the review of the Markets in Crypto-Assets Regulation (MiCA) with recommendations to simplify the framework while improving investor protection. The response addresses innovative business models, including decentralised finance (DeFi), staking, lending, and borrowing.

ESMA proposes new safeguards in areas where investors face risks not fully covered under the current framework. It also proposes stricter rules for the marketing of crypto-assets, particularly when promoted by influencers and third parties. These recommendations are currently in a proposed status pending the Commission's review process.

SEC Targets Private Market Retailization

The US Securities and Exchange Commission (SEC) voted to propose rule amendments aimed at facilitating capital formation in public and private markets. The proposed amendments would expand retail investor choice and promote innovation in regulated fund structures. This action is currently a proposal, not an adopted rule, but signals a shift toward broader retail access in US private markets.

OFAC Tightens Cuba and Iran Sanctions

The Office of Foreign Assets Control (OFAC) amended the Cuban Assets Control Regulations to implement portions of the President's foreign policy toward Cuba, including directives from National Security Presidential Memorandum-5 (NSPM-5), signed on 30 June 2025. The rule adds a prohibition on indirect financial transactions with entities or subentities on the Cuba Restricted List and removes authorizations for "U-Turn" transactions, group people-to-people travel, and professional meetings in Cuba.

OFAC also adopted a final rule amending the Iranian Transactions and Sanctions Regulations to implement provisions of a January 10, 2020, Iran-related Executive order. This amendment revises an existing definition and exemption and incorporates two exemptions from the 2020 order. OFAC intends to supplement these regulations with a more comprehensive set of rules, which may include additional interpretive guidance and general licenses.

US Market Infrastructure Updates

The SEC issued an order instituting proceedings to determine whether to approve or disapprove a proposed rule change by the Fixed Income Clearing Corporation (FICC). The proposal, modified by Partial Amendment No. 1, would modify GSD rules to adopt a U.S. Treasury clearing trade submission requirement.

In other market structure developments, Nasdaq GEMX, LLC, Nasdaq MRX, LLC, Nasdaq ISE LLC, and Nasdaq Texas, LLC filed rule changes with immediate effectiveness to amend Rule General 8, establishing fees for liquid-cooled cabinets. Additionally, MX2 LLC filed a rule change, effective immediately, to establish a monthly review of professional orders.

Regulatory Governance and Routine Actions

FINMA launched a consultation on the partially revised Circular 2017/6 "Direct transmission," open until 27 November 2026. The FCA announced three new Board appointments: Lea Paterson CBE and Matthew Tobin as non-executive directors, and Sarah Pritchard as an executive member.

OFAC published multiple general licenses, including GL 5W and batches of GLs 46C through 61A under the Venezuela Sanctions Regulations, and GL 131E, 131F, and 131G under the Russian Harmful Foreign Activities Sanctions Regulations. The EBA published its 2027 Work Programme. Isabel Schnabel of the ECB and Petra Tschudin of the SNB delivered speeches on monetary policy and new forms of money, respectively.

Our read

The opening of the FCA's crypto authorisation window is the most operationally significant event for UK-based firms, establishing a hard deadline of 28 February 2027 for compliance. Simultaneously, ESMA's recommendations on MiCA suggest that EU regulators are moving to close gaps in investor protection for DeFi and staking, which may impact product design for issuers targeting the single market. In the US, the SEC's dual focus on private market retailization and Treasury clearing trade submission indicates a continued push to modernize market infrastructure while expanding access. Compliance teams should prioritize updating screening procedures for the new OFAC Cuba and Iran restrictions immediately, as these are final rules with direct prohibitions.

This digest was produced automatically by a large-language-model system from the regulator publications and official sources listed below; it is AI-generated content and may contain inaccuracies. It is not legal advice — verify wording and deadlines against the original documents.

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