Crypto custody authorisation in the UK

Authorisation to hold cryptoassets for clients.

Reviewed by Harry Khan, Founder · 10 November 2026

Safeguarding qualifying cryptoassets, or arranging for another firm to safeguard them, is one of the seven activities that need FCA authorisation from 25 October 2027. It covers custodians, wallet providers and exchanges that hold their customers’ crypto.

Who needs it

Custodians and wallet providers holding cryptoassets or the keys to them for clients
Exchanges and brokers that keep customer crypto on their platform
Firms that arrange for a third-party custodian to hold their clients’ crypto

At a glance

Item	Detail
Regulator	Financial Conduct Authority (FCA)
Permanent minimum capital	£150,000
FCA application fee	£11,260 (category 6)
Application window	30 September 2026 to 28 February 2027
Regime starts	25 October 2027
FCA decision period	6 months from a complete application, 12 from an incomplete one

What the FCA requires

Own funds of at least £150,000, or more under the fixed overheads or K-factor calculation; the custody K-factor is 0.04% of client cryptoassets held
Client cryptoassets kept separate from the firm’s own, with records of what each client is owed
Regular reconciliations of the firm’s records against the assets actually held
Controls over private keys and wallets, and due diligence on any third-party custodian
Senior managers based in the UK, a money laundering reporting officer, and the conduct and complaints rules

How we help

ScopeWe confirm which of the seven activities your business carries on, and the capital and fee that follow.
PrepareBusiness plan, financial projections, policies, wind-down plan and the individual forms for your senior managers.
FileThe application submitted through the FCA’s Connect system inside the window.
AnswerWe handle the FCA’s questions until it decides, then support the first year of compliance.

Get in touch

Tell us where you are and where you want to be.

[email protected]
+44 7563 115980 (phone and WhatsApp)

Further detail

Arranging custody counts too

A firm that does not hold crypto itself but arranges for another firm to hold it for its clients is carrying on the safeguarding activity and needs the same permission.

Custody and the other activities

Most exchanges and brokers need custody permission alongside trading, dealing or arranging permissions. The firm holds the highest permanent minimum capital of the activities it applies for and pays one application fee at the highest category.

Questions

How much capital does a UK crypto custodian need?

A permanent minimum of £150,000, or more where the fixed overheads requirement or K-factor requirement is higher. The custody K-factor is 0.04% of the client cryptoassets the firm safeguards.

Is our current MLR registration as a custodian wallet provider enough?

No. Registration under the money laundering regulations does not convert into authorisation. You must apply for the safeguarding permission in the window or run off UK business before 25 October 2027.

Do we need custody permission if a partner holds the assets?

Yes, if you arrange for the partner to safeguard your clients’ cryptoassets. Arranging safeguarding is part of the same regulated activity.

What fee does the FCA charge?

The application fee for safeguarding is £11,260, category 6. A firm applying for several activities pays one fee at the highest category that applies.

Sources

From the blog

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November 2026