UK FCA Announces 90% of Cryptocurrency Company Registration Applications ‌Did ⁣Not ⁣Meet Approval Criteria

Key Findings

• The UK Financial Conduct Authority ⁣(FCA) reported that over 87% of cryptocurrency-related registrations received in 2023-24 did not meet its approval criteria.
• The FCA has ​been overseeing the UK cryptocurrency industry since 2020 and registers companies under anti-money laundering rules.

Cryptocurrency Companies ‌Face‌ Challenges⁤ in Meeting FCA Approval Criteria

Britain’s financial regulator revealed that 87% of ⁣cryptocurrency companies ⁤that applied ⁣for licenses under⁢ the country’s money laundering rules were ⁢not approved during the most recent financial ‍year.

The Financial Conduct Authority (FCA) stated in its annual report that only four of ⁣the 35 applications it received in the 12 months to March 31 ​were approved. Among the companies ​that were able to‌ register were BNXA, ⁤the UK division of PayPal, which has ​a payments partnership with Binance, and Komainu, a cryptocurrency custodian under Nomura ⁢Group.‌ The‌ rest were either denied license approval or turned down for missing⁣ key parts required for evaluation.

“More than 87% of cryptocurrency licence applications have been disapproved, withdrawn or refused,” the FCA said in‌ a statement. “We support firms applying for licences by ⁣communicating expectations and issuing guidance on good and bad practice, helping them understand what is required.‌ There are currently 44⁤ cryptocurrency firms on anti-money laundering ​registers.”

FCA’s Oversight of ​the Crypto Industry

The FCA has ​been overseeing the crypto industry since 2020, registering companies under anti-money laundering rules. The‍ regulator is waiting for legislation to‍ be passed that would allow ‌it to grant licenses for companies‌ to actually operate in the‌ country.

Registration ‌Process Challenges

Since January ‌2020, the FCA has received 359 applications⁤ from cryptocurrency firms, with only 44 registered. Some companies that did‌ not receive full FCA approval reported being hampered by a lengthy registration process, a lack of feedback, and what some said was unfair treatment by the⁢ regulator.

Impact on the Industry

The long wait times have led some companies to leave ⁣the ‌country and‌ seek registration elsewhere, resulting in them serving British ‍customers ⁣since April.