Dealing in cryptoassets as principal in the UK

Authorisation for firms that buy and sell crypto on their own account.

Reviewed by Harry Khan, Founder · 10 November 2026

Dealing in qualifying cryptoassets as principal, meaning buying and selling on the firm’s own account with clients, is one of the seven activities that need FCA authorisation from 25 October 2027. It carries the highest capital requirement in the regime.

Who needs it

Brokers that fill client orders from their own inventory
Market makers and OTC desks trading with UK clients
Crypto buy and sell services in apps where the firm is the counterparty

At a glance

Item	Detail
Regulator	Financial Conduct Authority (FCA)
Permanent minimum capital	£750,000
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 £750,000, the same as investment firms dealing on own account, or more under the fixed overheads or K-factor calculation
A 40% capital requirement on net positions in cryptoassets admitted to UK platforms; other holdings deducted from capital
Retail orders executed on UK-authorised venues; an authorised principal dealer cannot pass orders through to an unauthorised overseas platform in its group
Conduct rules, including the Consumer Duty, best execution and negative balance protection for retail clients
Senior managers based in the UK and an MLRO

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

Why the capital is higher

A principal dealer takes market risk on its own balance sheet. The FCA set the minimum at £750,000 to match investment firms dealing on own account, with no phase-in, because the minimum is a condition of authorisation.

Dealing as agent instead

A firm that only executes orders for clients without taking positions may need only the dealing as agent permission, with £75,000 minimum capital. The structure of the business decides which applies.

Questions

How much capital is needed to deal in crypto as principal?

A permanent minimum of £750,000, or more where the fixed overheads or K-factor requirement is higher, held from authorisation.

What is the difference between dealing as principal and as agent?

As principal the firm is the counterparty and trades on its own account. As agent it executes orders for clients without taking the position itself.

Can we route UK orders to our overseas exchange?

Not if the overseas platform is unauthorised. Retail and elective professional client orders must be executed on a UK-authorised venue.

Do institutional clients count?

Dealings with UK institutional clients do not need authorisation unless the client acts as an intermediary for UK consumers.

Sources

From the blog

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November 2026