The UK Financial Conduct Authority (FCA) Accelerates Approvals for Crypto Companies
The UK Financial Conduct Authority (FCA) has pledged to speed up approvals for companies involved in cryptocurrency trading after years of the regulator being accused of stifling innovation.
Since 2020, any firm seeking to conduct cryptoasset business in the UK has been required to register with the FCA and demonstrate compliance with anti-money laundering and counter-terrorism financing rules. So far, 55 companies have been added to the register.
Faster Approvals after Years of Delays
The UK’s FCA has announced a commitment to streamline the process of approving cryptocurrency registrations, promising quicker approvals and a more user-friendly approach following criticism from the industry.
Simon Jennings, the executive director of the UK Cryptoasset Business Council, emphasized the importance of timely authorizations, stating, “We’ve seen first-hand that even multibillion-dollar firms can spend years trying to secure UK authorization — and the reality is, they won’t wait around forever.”
Former chancellor George Osborne, now advising Coinbase, echoed the sentiment, urging the UK to catch up with other jurisdictions in embracing cryptocurrencies and stablecoins.
Since April, the FCA has approved the registrations of five crypto companies, including BlackRock and Standard Chartered, while rejecting or seeing the withdrawal of six others. The acceptance rate has risen to 45%, a significant improvement from less than 15% in previous years.
The average processing time for successful applications has also decreased notably. Companies that registered in the past year completed the process in just over five months, compared to an average of 17 months for those approved two years earlier.
Decline in Applications Despite Improvements
While approvals are on the rise, the number of companies applying to register has declined sharply. In the year to April 2023, 46 applications were filed, dropping to 26 by April 2025.
Approvals also decreased from eight in 2022–23 to just three in 2024–25, before showing a slight increase in the past six months.
Industry experts suggest that the decrease in applications may be due to companies waiting for the comprehensive crypto regulatory framework expected to be introduced in the UK next year.
The FCA has been actively engaging with newly registered companies, inviting them to share their experiences. Raphael Landesmann, regulatory counsel at GSR, mentioned participating in an FCA workshop to advise others after the firm’s successful registration in December.
Despite the slowdown in applications, the FCA’s efforts to streamline the approval process and encourage stronger applications are seen as positive steps towards fostering innovation in the cryptocurrency sector.
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