UK regulator proposes licensing rules for crypto apps that use automated trade routing
The UK's Financial Conduct Authority (FCA) has proposed guidance saying crypto apps may need licences when algorithms choose trade routes. The draft separates simple technical access from substantive involvement in transactions, and firms are preparing for the UK's October 2027 regime. This could affect how trading apps are built and run in the UK.
Why it matters
- The proposal treats technical access differently from substantive involvement in transactions.
- Apps where algorithms pick trade routes may need a licence under the draft guidance.
- Firms are already applying ahead of the UK's October 2027 crypto regime.
What to watch next
Watch for the FCA's final guidance and how UK crypto platforms respond ahead of the October 2027 regime.
