• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Almost 90% of Crypto Companies Failed UK Registration Due to Weak AML and Fraud Controls

user avatar

by Giorgi Kostiuk

a year ago


  1. Registration System Shortcomings
  2. New Financial Promotions Perimeter
  3. Opportunities Outside the UK

  4. In the past 12 months, nearly 90% of crypto firms seeking registration in the UK failed to meet the country's financial regulator's standards.

    Registration System Shortcomings

    According to the UK Financial Conduct Authority’s (FCA) annual report for 2024, crypto firms faced difficulties in gaining approval due to weaknesses in fraud protection and anti-money laundering (AML) protocols. Out of 35 total applications for crypto firm registration in the past year, only 4 were approved, 15 were withdrawn, and 9 were rejected.

    Over 87% of crypto registrations were withdrawn, rejected, or refused for weak money laundering controls.None

    New Financial Promotions Perimeter

    The regulator also announced a new financial promotions perimeter for crypto advertising in June 2023, to ensure that crypto ads in the UK were clear, fair, and not misleading. The FCA noted increased public awareness of potential crypto scams, with 63% of consumers calling about a scam before investing in a project, a 5% rise from the previous year.

    Opportunities Outside the UK

    On August 30, international law firm Reed Smith warned that companies might look elsewhere for launching due to long wait times and insufficient political will at the FCA to handle new applications in a timely manner. On average, it takes FCA 459 days to process a crypto firm's registration. Over the last three years, 186 applications were withdrawn.

    If applications are falling because crypto firms have essentially given up waiting and started looking abroad, this should send a clear warning about London's competitiveness.Reed Smith partner Brett Hillis

    As crypto companies seek friendlier jurisdictions for their operations, questions arise about London's future role as a global crypto hub.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Ethereum Retests Key Bullish Breakout Zone

chest

Ethereum is currently retesting a crucial breakout zone that may determine the future trend direction.

user avatarLi Weicheng

Latvia Issues First MiCA Licenses for Crypto Firms

chest

Latvia has issued its first MiCA licenses, allowing two companies, BlockBen and Nexdesk, to operate as crypto service providers across the EU.

user avatarDavid Robinson

Cybercriminals Cause $262 Million Loss in Bank Account Fraud

chest

The FBI reported a staggering loss of $262 million from US bank accounts due to account takeover fraud, highlighting the increasing threats targeting bank account holders.

user avatarAisha Farooq

Bitcoin Price Expected to Surge to $150,000 by 2026

chest

Katherine Dowling predicts Bitcoin will reach $150,000 by 2026, citing a favorable regulatory environment and increased institutional investments.

user avatarTenzin Dorje

Strategy Elevated as Bitcoin Proxy in Nasdaq's 2024 Reshuffle

chest

The Nasdaq 100 reshuffle in 2024 has seen Strategy included as a Bitcoin proxy, significantly amplifying its market presence.

user avatarBayarjavkhlan Ganbaatar

China Introduces New Blockchain Standards for Logistics

chest

The Ministry of Industry and Information Technology in China has announced 11 new national standards for blockchain-based logistics tracking applications, aiming to enhance data management and seek public feedback.

user avatarMohamed Farouk

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.