In latest crypto news, the crypto industry is facing a major roadblock in the UK.
Nearly 90% of crypto companies seeking registration in the UK over the past year fell short of the standards set by the country’s financial regulator.
According to the UK Financial Conduct Authority’s (FCA) 2024 annual report, many firms struggled to meet approval due to weak fraud protection and anti-money laundering measures.
The FCA revealed that over 87% of crypto applications were either withdrawn, rejected, or refused due to insufficient money laundering controls. Out of 35 applications submitted by crypto firms, only 4 received approval. Meanwhile, 15 applications were withdrawn, and 9 were outright rejected.
The regulator highlighted that many applications were rejected for missing critical components necessary for assessment, or for poor-quality submissions that rendered them invalid.
In June 2023, the FCA introduced a new “financial promotion perimeter” to ensure that crypto advertising in the UK was transparent, fair, and not misleading. The report also noted that public awareness of potential crypto scams had risen, with 63% of consumers inquiring about scams before investing, up 5% from the previous year.
As per crypto market latest news, on August 30, international law firm Reed Smith suggested that crypto firms may begin looking beyond the UK for more favorable registration conditions, citing lengthy wait times and a lack of political will within the FCA to address crypto applications promptly.
Over the last three years, it has taken an average of 459 days to process a registration, with 186 applications withdrawn during that period. Reed Smith’s Brett Hillis pointed out that if firms are abandoning applications due to long delays, it could signal a potential threat to London’s competitiveness as a crypto hub.
