The UK financial watchdog, the Financial Conduct Authority (FCA), has made significant strides in accelerating the review process for crypto applications. After facing years of criticism from industry players for moving too slowly and approving too few applications, the FCA has cut approval times by two-thirds and increased its acceptance rate.
Since April, the FCA has approved the registrations of five firms, including US investment giant BlackRock and UK lender Standard Chartered. This marks a significant improvement in the approval process, with the acceptance rate now standing at 45%, a sharp rise from less than 15% in the previous five years.
Despite the improvement in the approval process, there has been a decrease in the number of crypto firms seeking entry into the UK market. Applications have fallen from 46 in the year to April 2023 to 26 in the year to April 2025. Approvals have also dropped from eight in 2022-23 to just three in 2024-25, though the pace has picked up in recent months.
Since 2020, all firms looking to conduct crypto asset activities in Britain have been required to register with the FCA and demonstrate compliance with the regulator’s rules on preventing financial crime, including money laundering and terrorist financing.
The FCA’s efforts to speed up the approval process come as the regulator prepares to launch a full regulatory framework for digital assets in 2026. Regulators in London are aiming to create a more welcoming environment for crypto firms as the US and EU race ahead with more accommodative policies.
In an effort to ease the path for applicants, the FCA has started offering preapproval meetings with case officers to help firms prepare their submissions. The regulator has also hosted roundtables and webinars to clarify expectations around the registration process.
Recently, the FCA opened a consultation on applying the same regulatory standards to crypto firms as to traditional financial institutions. The plan seeks to establish baseline rules while considering sector-specific exemptions that reflect the unique features of the crypto market.
Some industry experts believe that the upcoming launch of a broader regulatory framework may have contributed to the decrease in applications. Companies may be waiting for the new rules before pursuing approval, anticipating that a clearer regulatory regime could make it easier to operate in Britain.
Overall, the FCA’s efforts to ramp up the pace of crypto approvals are a positive step towards creating a more conducive environment for crypto firms in the UK. The regulator’s focus on streamlining the approval process and clarifying regulatory expectations demonstrates a commitment to fostering innovation and growth in the crypto industry.