#UKAlgorithmicCryptoTradingAppsMayNeedFCAAuthorization
๐ฌ๐ง UK Crypto Apps That Pick Trade Routes May Need an FCA License
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The FCA published draft perimeter guidance (CP26/36) on Oct 21
โ ๏ธ Apps whose algorithms choose venues or routes by price, liquidity, cost or speed may be "arranging deals" in crypto, a licensed activity
๐ Red flags include changing user instructions, setting execution timing and promising best execution
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A plain interface that only passes instructions to a third-party platform or DeFi protocol may fit the technical-services exclusion
๐ค Automating the decision does not exempt the developer or operator
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Comments close Nov 18, applications are due by Feb 28, 2027, and the regime starts Oct 25, 2027
What it means for crypto: DeFi aggregators and trading bots serving UK users may need a license or a redesign, which adds cost but also clearer rules. Bitcoin is near $80.8K, down about 1.1% in 24 hours.
Should routing algorithms need a license? ๐
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