RegAlertUnited Kingdom: fintech & payments regulation — 2026-08
RegulatedFCA-regulated VASP regime; PRA co-supervises; PSR oversees payment systems
Frozen snapshot — the guide as it stood at the end of 2026-08. See the live guide for the current state.
The UK regulates fintech and payments primarily through the FCA under FSMA 2000. The regime is mature, requiring authorisation for payment services and e-money. A comprehensive cryptoassets regime was established in 2026, bringing stablecoins and custodial services under FCA supervision. The PRA co-supervises prudential aspects for larger firms.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Payment processing / gateway | LicenceAuthorised Payment Institution[1] Requires authorisation under Payment Services Regulations 2017 | — | — | FCA |
| E-money & wallet issuance | LicenceAuthorised E-money Institution[1] Requires authorisation under E-money Regulations 2011 | — | — | FCA |
| Domestic money transfer | LicenceAuthorised Payment Institution[1] Domestic transfers covered under Payment Services Regulations 2017 | — | — | FCA |
| Cross-border remittance | LicenceAuthorised Payment Institution[1] Cross-border payments require FCA authorisation | — | — | FCA |
| Agent network | LicenceAuthorised Payment Institution[1] Agent networks must be covered by the firm's permission | — | — | FCA |
| Open banking / account information | LicenceAuthorised Payment Institution[1] Account Information Service Providers require FCA authorisation | — | — | FCA |
| Foreign-exchange services | LicenceAuthorised Payment Institution[1] FX services are payment services requiring FCA authorisation | — | — | FCA |
New — what changed recently
- 2026-06-26FCA Cryptoassets Regime Policy Statements — Established comprehensive FCA regulation for cryptoasset firms under FSMA 2000, including stablecoins and custodial services.[2]
- 2024-09-19PS25/12: Safeguarding regime changes — Finalised changes to safeguarding requirements for payments and e-money firms, enhancing prudential risk management.[1]
- 2024-09-06FG24/6: Risk-based approach guidance — Issued finalised guidance requiring firms to adopt a risk-based approach for managing payment services.[3]
Market-entry checklist
- 1Apply for FCA AuthorisationSubmit application under Payment Services Regulations 2017 or E-money Regulations 2011.
- 2Establish SafeguardingImplement segregated client account arrangements as per PS25/12.
- 3Register for AMLRegister with the National Crime Agency for anti-money laundering supervision.
- 4Prepare Risk FrameworkDevelop risk-based protocols for payment services as required by FG24/6.
- 5Engage with PSRIf operating payment systems, engage with the Payment Systems Regulator.