UK’s FCA says crypto apps may need licenses when algorithms choose trade routes
The UK Financial Conduct Authority proposed guidance that could require crypto trading apps to obtain authorization if they choose venues or routes based on price, liquidity, cost, speed, risk or expected outcomes. Interfaces that merely pass customer instructions to third-party platforms may qualify for a technical-services exemption, but automated decision-making does not itself avoid regulation. The FCA also said identifiable parties may remain responsible for decentralized platforms despite governance structures or smart contracts. The guidance forms part of a crypto framework due to take effect on Oct. 25, 2027. The FCA is seeking feedback by Nov. 18 and targets final guidance in 2027. Existing firms seeking transitional protections must apply between Sept. 30, 2026, and Feb. 28, 2027; the regulator may allow extra time for some arranging-permission details.
