Country guide · Europe

🇬🇧 Financial licensing in United Kingdom

FCA and PRA authorisations; UK regimes are no longer passportable into the EEA.

Banks are dual-regulated by the PRA and FCA. Payment institutions and e-money institutions are authorised by the FCA under the Payment Services Regulations 2017 and Electronic Money Regulations 2011. Cryptoasset businesses must register with the FCA for anti-money-laundering purposes, and the UK is implementing a broader cryptoasset regime.

Regulators

Prudential Regulation Authority (PRA)
Prudential authorisation of banks
Official website
Financial Conduct Authority (FCA)
Conduct regulator; authorises PIs, EMIs, registers cryptoasset firms
Official website

Licence and authorisation types

Banking licence

UK bank (deposit-taker)

Regulator: Prudential Regulation Authority (PRA)
Permitted activities: Accepting deposits and other regulated activities as permitted.
Minimum capital: Verification required — PRA sets capital under UK CRR; mobilisation route available.
Ownership, management & substance: UK presence and management.
Application procedure: Pre-application with PRA/FCA New Bank Support; optional mobilisation (restricted licence).
Government fees: Verification required
Indicative timeline: No reliable published estimate
Limitations: No EEA passporting after Brexit.
Legal basis: FSMA 2000 Part 4A

Electronic money institution (EMI)

UK authorised EMI

Regulator: Financial Conduct Authority (FCA)
Permitted activities: E-money issuance and payment services.
Minimum capital: EUR 350,000 equivalent initial capital (EMRs 2011).
Ownership, management & substance: UK head office; management and compliance in the UK.
Application procedure: FCA Connect application.
Government fees: Verification required — see FCA application fees
Indicative timeline: FCA has statutory deadlines for complete applications; overall timeline varies
Limitations: Safeguarding regime being strengthened by FCA.
Legal basis: Electronic Money Regulations 2011

Payment institution (PI)

UK authorised payment institution

Regulator: Financial Conduct Authority (FCA)
Permitted activities: Payment services under PSRs 2017.
Minimum capital: EUR 20,000 / 50,000 / 125,000 equivalent depending on services.
Ownership, management & substance: UK head office.
Application procedure: FCA Connect application.
Government fees: Verification required
Indicative timeline: No reliable published estimate
Limitations: Small payment institution registration available below thresholds.
Legal basis: Payment Services Regulations 2017

Virtual asset service provider (VASP)

FCA cryptoasset registration (MLRs)

Regulator: Financial Conduct Authority (FCA)
Permitted activities: Cryptoasset exchange and custodian wallet provision (AML registration).
Minimum capital: No prudential capital under MLR registration.
Ownership, management & substance: UK presence expected.
Application procedure: Registration application to FCA under the Money Laundering Regulations.
Government fees: Verification required
Indicative timeline: No reliable published estimate
Limitations: AML registration only; financial promotions regime applies; a full cryptoasset authorisation regime is being introduced.
Legal basis: MLRs 2017