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The future of crypto trading: the new EU and UK rules

Crypto trading in Europe is moving under licensing rules. The EU's MiCA transition ended on 1 July 2026, and the UK's FCA regime is expected to start on 25 October 2027, with applications now open.

By FTC Editorial TeamPublished 1 min read

The Binance theft arrived as the rules for crypto trading in Europe are changing from registration to licensing. The direction is set in law; how each provider responds is not, so this explainer sticks to what the regulators have published.

European Union: MiCA

The Markets in Crypto-Assets Regulation (MiCA) requires firms providing crypto-asset services in the EU to be authorised as crypto-asset service providers (CASPs). Its transitional ("grandfathering") clause let firms that were already providing services under national law before 30 December 2024 carry on until 1 July 2026 at the latest, or until their MiCA application was granted or refused (ESMA, MiCA). That longest transition has now ended, so a provider serving EU clients needs a MiCA authorisation.

The future of crypto trading: the new EU and UK rules — moving average crossover diagram
A fast moving average crossing a slower one

United Kingdom: the FCA regime

The Financial Conduct Authority says the new UK cryptoasset regime is expected to come into force on 25 October 2027, and that crypto firms can now apply for authorisation, or to vary an existing permission, through its Connect system (FCA, new regime for cryptoasset regulation).

The future of crypto trading: the new EU and UK rules — bid-ask spread diagram
The bid-ask spread on a currency pair

Enforcement across borders

The FBI's alert on the Binance theft asked exchanges, DeFi services, swap services and analytics firms worldwide to block transactions linked to 628 listed addresses (FBI), and stablecoin issuers froze part of the stolen funds within an hour of the theft starting, according to Chainalysis (Chainalysis).

The future of crypto trading: the new EU and UK rules — risk-reward diagram
A risk-reward ratio of 1 to 2

What to check as a trader

Check a crypto provider the way you'd check a forex broker: is it authorised in your region, by whom, and under which entity? The steps are the same as in how to check if a forex broker is regulated. For crypto pairs at forex brokers, see the discussion on crypto CFDs at brokers. Live prices: BTC/USD and ETH/USD.

Sources

  1. European Securities and Markets Authority: Markets in Crypto-Assets Regulation (MiCA)
  2. Financial Conduct Authority: New regime for cryptoasset regulation
  3. FBI: North Korea Responsible for $6 Billion+ Binance Attack, 31 October 2026
  4. Chainalysis: The $6.4 Billion Binance Hack: Tracing the North Korea Link

Common questions

When did the MiCA transitional period end?

MiCA's grandfathering clause allowed existing providers to continue until 1 July 2026 at the latest, or until their application was decided, according to ESMA.

When does the UK crypto regime start?

The FCA says the new cryptoasset regime is expected to come into force on 25 October 2027, and firms can already apply for authorisation through its Connect system.

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This article is for information only and is not financial advice. Trading forex and CFDs carries a high risk of losing money. Read the risk warning. Spotted an error? Tell the editors.

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