Crypto firms see continued access to UK customers as the most pressing matter at stake as the country’s regulatory regime takes shape but the majority acknowledge they aren’t yet ready for it, according to new research from digital assets platform Zumo.

Early insights from the company’s landmark survey of cryptoasset service providers serving UK clients reveal 70% identify losing the ability to serve their UK customers as a main risk of not being ready for the new regime. Half (50%) have concerns about financial penalties or regulatory sanctions, with the same figure worrying about subsequent loss of revenue or market share.

Following the publication of its final rules and guidance, the Financial Conduct Authority (FCA) is preparing to open its application gateway for firm authorisations on 30 September 2026, ahead of the implementation of a comprehensive regulatory regime for cryptoassets in October 2027.

However, just 10% of providers consider themselves fully prepared for the new rules, while six in ten are still assessing how to adapt their UK operating model to meet the new requirements. Eight in ten perceive their risk of not being ready in time as moderate to high, while 60% believe their current operating model would be exposed to regulatory enforcement..

Ambition Ahead of Execution

Their ambition, by contrast, is in little doubt.

Nine in ten firms intend to apply for authorisation during the FCA’s application window, which will shut in February 2027, and 60% expect the regime to expand their UK business – the same figure (60%) believe the incoming regime will boost interest among their customer base in crypto as an asset class.

While awareness of the regime is universal among respondents, execution is at an early stage with half (50%) of firms still at the planning phase when it comes to their regulatory readiness initiatives.

When asked about their organisation’s single biggest challenge, three in ten said it’s determining which rules apply to them and what permissions are needed. Beneath this headline challenge lies a consistent set of operational pain points, including the cost and internal resource demands of getting ready, mapping services to UK regulated activities, and implementing compliant custody or safeguarding arrangements.

Confidence that the regime is unfolding in firms’ favour remains limited: only two in ten agree it’s developing in a way that sets firms up to operate successfully in the UK.

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Call For Collaboration

The early insights from Zumo’s survey show the gap between ambition and firms’ current state of readiness is now the defining feature of the market.

Few are attempting to close this gap alone. Some seven in ten have sought, or plan to seek, external support from legal and compliance advisers, industry bodies, or technology providers as they work through the challenges.

Respondents are also looking for more support from the regulator. While FCA guidance to date was rated ‘fair’ by 80% of firms – with none rating it ‘poor’ – the research has uncovered a consistent set of asks: clearer guidance on regulatory scope and applicability, more time and transitional arrangements, and better signposting of UK-compliant infrastructure and technology solutions.

The FCA’s Pre-Application Support Service (PASS) meetings for cryptoasset firms are now officially underway, which provide an opportunity to connect some of the dots. These meetings give firms an opportunity to ask questions and discuss their business plans ahead of the application window.

“With the UK’s regulatory regime now set in stone, authorisation will become a game changer. Authorised market participants will have the potential to shift the status quo and unlock pent-up institutional appetite,” Nick Jones, chief executive and founder of Zumo, said.

“The early findings from our survey indicate a market caught between ambition and execution; firms have decided the UK is worth the effort, but must overcome a number of obstacles to be ready in time to realise the opportunity. It’s encouraging that firms are treating readiness seriously and reaching for the expertise they need – the cost of getting it wrong is cutting off access to one of the world’s most compelling markets.

“The asks emerging from this research are practical ones – clarity on scope, realistic timelines, and visibility of the infrastructure that meets UK-specific requirements.

“It’s an exciting time for the UK, but also the end of an era: of offshore provision, start-up style business processes, and unregulated business models. As the industry moves onshore, providers will need access to critical partner infrastructure that can act as a bridge to the scaling UK cryptoasset market.”