The Financial Conduct Authority has begun accepting applications under its new crypto asset authorization regime, with a hard deadline of February 28, 2027 for firms wishing to operate legally in the UK. This follows years of a temporary registration framework and represents a materially higher compliance bar including fit-and-proper assessments, AML controls, and financial resilience standards.
For Armada's crypto repo desk, any UK-domiciled counterparty, including hedge funds, family offices, or market makers, that fails to obtain FCA authorization by the deadline could become an ineligible trading partner. Counterparty onboarding documentation should include authorization status. This is also relevant to Fireblocks custody arrangements if any UK-regulated entities are involved in the custody chain.