The UK Financial Conduct Authority (FCA) published consultation paper CP26/36 on October 21, signaling that crypto applications selecting trading routes based on price, liquidity, speed, or cost may require regulatory authorization. The FCA stated such services likely fall outside the "pure technical service" exemption if the provider materially participates in trading decisions, regardless of whether algorithms are used.
Interfaces that process transactions strictly according to user instructions and predetermined objective rules may still qualify for the exemption. The consultation period closes November 18, and no new rules are currently in effect. The UK's comprehensive crypto regulatory regime is scheduled to take effect on October 25, 2027.
UK FCA Consultation Signals Crypto Trading Route Apps May Need Authorization
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