Crypto apps using algorithmic selection of trading venues may need a UK license; the application window for existing firms is September 30, 2026 to February 28, 2027

Odaily reports: The UK Financial Conduct Authority (FCA) has published draft guidance CP26-36, stating that crypto trading apps may constitute "arranging crypto trading" if they select trading venues or execution paths for clients based on price, liquidity, cost, or execution speed, and would require authorization under new rules taking effect on October 25, 2027. Modifying trading instructions, deciding execution timing, or selecting routes based on counterparty risk and expected outcomes all count as indicators of "discretionary involvement"; automated decision-making does not exempt developers or operators, while interfaces that purely relay orders without affecting execution may qualify for the technical services exemption. Existing UK crypto firms must submit applications between September 30, 2026 and February 28, 2027; the consultation period runs until November 18, and the FCA aims to publish the final guidance in January 2027, though the consultation paper states the timing as spring.