Britain’s crypto industry has just over 12 months preparing for an even stricter regulatory regime, a senior official said in the country’s financial regulator.

Matthew Long, director of payments and digital assets at Britain’s Financial Conduct Authority (FCA), Coindesk said in an interview that the “impending gateway regime”, earmarked for 2026, will actually be a new authorization regime for crypto companies.

“We want a gateway that allows permission. But we obviously have to review these consultations, create these rules and get the legislation for it to take place,” Long said.

This regime will be a leap from the current anti-wide laundering of money (AML). Companies like Crypto Excanses Coinbase, Gemini and Bitpanda will move away from just needing to register with the country to comply with the rules against money laundering for an authorization regime with rules for a package offer. This requires them to undergo a fresh process to ensure the approval of FCA.

FCA intends to release papers on stableecoins, trading platforms, stacking, prudential crypto exposure and more this year. The regime is expected to go live after the final political papers were published in 2026, Long said.

Since its money laundering of money laundering for companies opened in 2020, FCA received 368 applications from companies that wanted to comply, but only 50 companies-14% of applicants-are approved so far. Many companies may need to start again.

Read more: UK Financial Regulator aims at Crypto Regime in 2026

Regulated activities

Upcoming legislation will define what counts as a regulated activity, FCA’s Long said. Companies participating in these activities will have to apply for permission.

By 2023, the former British government released papers that said regulated activities would probably include crypto and fiat-referenced stablecoin’s issuance as well as payment, exchange and lending activities.

Stableecoins will no longer be brought under the British payments, as described in previous work, former financial secretary Tulip Siddiq said in November. FCA plans to consult on draft rules for stableecoins early this year.

“What we are doing in terms of stableecoins is that we make sure we take the best of the current regulation found in Tradfi, but stablecoins are ultimately unique,” Long said. “There is nothing that is exactly the same. We have to customize the regulation we have been given at the moment.”

Read more: UK to prepare a regulatory framework for crypto, stableecoin early next year

Transition

FCA still decides that Crypto Companies should go through to be authorized, Long said.

Long added that it was indefinite which steps those already registered in the money washing regime must take, but the new regime is coming with wider permits, “so we would expect that if you would have the additional permits you would apply for them.”

Therefore, companies may need to undergo a long registration process – even if they have already secured an existing license.

“We communicate with companies about what the gateway will look like before it goes live, our intention is to bring it live as soon as humanly possible,” Long said, referring to the authorization regime.

In the formulation of how it intends to move forward, the regulator also plans to look at Europe that has launched tailor -made legislation to the crypto sector and the International Organization of Securities Commissions ’18 recommendations. IOSCO will soon publish a piece about how countries are progressing with its standards, said someone who is familiar with the case.

“It’s a case of understanding and leads to best practice,” Long said.

Read more: UK Crypto Firms and Regulator owes each other for industry immigration