Crypto License in the UK

Last Update: 23.02.2026

The United Kingdom remains one of the leading global jurisdictions for fintech innovation, blockchain development, and cryptocurrency businesses. The country provides a structured regulatory environment supported by strong financial institutions, clear compliance expectations, and international credibility.

Although the UK does not yet operate a traditional “crypto license” system, companies providing cryptoasset services must register with the financial regulator and comply with strict anti-money laundering requirements. Bergerslegal provides comprehensive legal and regulatory assistance for companies planning to establish and operate crypto businesses in the United Kingdom.

Overview of Crypto Regulation in the United Kingdom

The UK has adopted a progressive but controlled approach toward digital assets. Cryptocurrency activities are regulated primarily through financial crime prevention legislation rather than a standalone licensing regime.

Cryptoassets are defined by UK authorities as digital representations of value or contractual rights secured by cryptography and transferable using distributed ledger technology.

UK regulators classify cryptoassets into several categories:

• Exchange tokens — cryptocurrencies such as Bitcoin or Ethereum used for payments or investment.
• Security tokens — digital instruments granting ownership or profit rights and regulated under financial securities law.
• Utility tokens — tokens providing access to products or services.
• Electronic money tokens (e-money tokens) — digital assets qualifying as electronic money under UK legislation.

Companies dealing with security tokens may require additional authorization under financial services legislation.

The UK government continues developing a comprehensive crypto regulatory framework expected to introduce a full licensing regime starting from 2026.

Advantages of a UK Crypto License

Operating a crypto business in the United Kingdom provides multiple strategic benefits:

Strong international reputation

• One of the world’s most respected financial jurisdictions
• High trust level among banks and institutional partners
• Strong investor confidence

Competitive taxation framework

• Corporate tax structure remains internationally competitive
• Cryptoassets treated as property rather than currency
• No VAT applied to cryptocurrency exchange transactions

Flexible business environment

• Fast company incorporation procedures
• Multiple corporate structures available
• Innovation-friendly regulatory policy

Developed fintech ecosystem

• Access to venture capital and accelerators
• Large fintech and blockchain community
• Advanced professional services infrastructure

Stable legal system

• Predictable common law framework
• English language business environment
• Strong contractual enforcement

Service Packages — Crypto License in the United Kingdom (Bergerslegal)

Basic Package

Ideal for startups entering the UK crypto market.

• Turnkey company incorporation
• FCA crypto registration support
• Registered legal address for 12 months
• Basic AML/KYC documentation
• Regulatory guidance during submission

Advanced Package

Suitable for companies requiring operational and compliance assistance.

Includes everything from Basic Package plus:

• Full communication with FCA during authorization
• Corporate documents preparation and legalization
• Banking assistance for crypto operations
• MLRO candidate support and onboarding guidance

Full Package

End-to-end legal and compliance solution.

Includes everything from Advanced Package plus:

• Business model legal analysis
• Customized AML/CFT framework and risk matrix
• Legal opinions and memorandums
• Ongoing regulatory and legal support after approval

Requirements for Obtaining a Crypto License in the United Kingdom

Registration with the Financial Conduct Authority (FCA) is mandatory if a company:

• exchanges cryptoassets for fiat or other cryptoassets;
• operates crypto ATMs;
• provides custody or wallet services;
• transfers or manages client cryptoassets;
• participates in token issuance activities.

Main requirements

• Company incorporated in the UK
• Physical operational presence
• At least one UK-resident director
• Appointment of an MLRO officer
• Full AML/CTF compliance framework
• Transparent ownership structure
• Proper accounting and record keeping

AML/CFT obligations include

• Internal AML policies
• Risk assessments
• Customer due diligence (CDD/EDD)
• Transaction monitoring
• Suspicious activity reporting

There is currently no minimum share capital requirement for crypto companies.

Procedure for Obtaining a UK Crypto License

Step 1 — Regulatory preparation (2–4 weeks)

• Business model assessment
• AML framework preparation
• MLRO appointment
• Compliance planning

Step 2 — Company incorporation (≈4 weeks)

• Registration of a UK limited company
• Appointment of directors
• Establishment of office presence

Step 3 — Documentation preparation (3–5 weeks)

• Business plan and operational program
• IT and cybersecurity description
• Corporate structure disclosure
• Compliance documentation

Step 4 — Application submission

Application submitted through FCA Connect platform.

Step 5 — Payment of state fee

• £2,000 — revenue below £250,000
• £10,000 — revenue above £250,000

Step 6 — FCA review (3–6 months)

Regulator evaluates management reputation, compliance systems, and operational readiness.

Step 7 — Registration approval

Company is added to the Financial Services Register and may legally operate crypto services.

Crypto Regulation in the United Kingdom

Key regulatory authorities:

• Financial Conduct Authority (FCA) — supervision and AML compliance
• HM Treasury — financial policy development
• Bank of England — financial stability and CBDC research

Regulation currently relies on Money Laundering Regulations aligned with EU AML directives adopted before Brexit.

Future reforms aim to integrate cryptoassets fully into the regulated financial sector by 2026, introducing:

• full licensing requirements;
• capital and risk management standards;
• stronger consumer protection rules;
• stricter advertising supervision.

Overview of UK Crypto Regulation

Company Registration for Crypto Business in the UK

Setting up a crypto company includes:

1. Choosing a unique company name
2. Selecting company type (usually Private Limited Company — Ltd)
3. Appointing director and shareholder
4. Establishing UK registered address
5. Preparing incorporation documents
6. Registration with Companies House
7. Selecting SIC activity code
8. Opening corporate bank or EMI account

After incorporation, the company may proceed with FCA registration.

Taxation Crypto Companies in the United Kingdom

UK tax authorities treat cryptocurrencies as assets rather than legal currency.

Key taxation principles

• Corporate Income Tax
  • 19% for profits below £50,000
  • Up to 25% for higher profits
• Capital Gains Tax
  • Applies to disposal or exchange of cryptoassets
• Income Tax
  • Applies when crypto is received as payment
• Mining taxation
  • Mining rewards treated as taxable income
• VAT
  • Crypto exchange transactions generally exempt

Tax treatment depends on business activity such as trading, custody, or investment operations.

Obligations for Crypto Companies in the United Kingdom

Licensed or registered crypto companies must:

• Maintain FCA registration
• Perform ongoing AML monitoring
• Conduct customer KYC checks
• Train employees regularly
• Maintain internal audit procedures
• Submit regulatory and financial reports
• Monitor customer risk profiles continuously

Liability for Non-Compliance

Failure to comply with UK crypto regulations may result in:

• financial penalties;
• revocation of registration;
• prohibition of activities;
• reputational damage;
• criminal liability in severe cases.

Conclusion

The United Kingdom remains a highly attractive jurisdiction for crypto businesses due to its mature financial ecosystem, legal stability, and evolving regulatory clarity. The upcoming transition toward a full licensing regime will further strengthen market credibility while increasing compliance expectations.

Bergerslegal assists crypto companies at every stage — from company incorporation and FCA registration to ongoing regulatory compliance and strategic legal support. Our specialists help businesses adapt to regulatory changes and successfully operate within the UK’s rapidly developing crypto framework.