87% of application for crypto licenses in the UK have failed in the past year
Share link:In this post: Four firms out of 35 that applied for crypto licenses got registered in the UK in 2023 fiscal year. The FCA blames failure rate on inability of firms to meet application standards. Crypto stakeholders claim the long wait times and tough regulatory stance are the major challenges.
The UK Financial Conduct Authority (FCA) only registered four out of 35 companies that applied for licensing in the country over the 12-month period ending March 31, 2024, representing an 87% failure rate. The regulator attributes the failure rate to firms’ weak anti-money laundering controls.
In its annual report , the FCA claims its regulatory approach has made more people aware of potential crypto scams. Some of the successful firms registered included BNXA, a partner for Binance, Koamainu, and PayPal UK Unit.
47 out of 340 crypto registration applications approved in 3 years
The high number of failed applications is not peculiar to the 2023 fiscal year alone. The FCA report also showed that since January 2020, when it got the mandate to register crypto entities, 340 applications have been submitted, but only 47 have been registered, representing 14% of all applications.
The FCA has rejected 40 firms (12%) and refused 13 (4%), while 240 of these applications (70%) have been withdrawn. According to the FCA, the failure rate is because most companies did not meet specific requirements, noting that a weak anti-money laundering process is the key reason for rejecting so many of these firms.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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