• 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

2 years 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 Out of 35 total applications for crypto firm registration in the past year, only 4 were approved, 15 were withdrawn, and 9 were rejected.

    Over 87% of crypto registrations were withdrawn, rejected, or refused for weak money laundering controls.None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 Over the last three years, 186 applications were withdrawn.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

APEMARS Introduces Urgency with Ticking Mechanism

chest

APEMARS has implemented a ticking mechanism that creates urgency for investors as tokens sell out quickly.

user avatarRajesh Kumar

APEMARS Implements Token Burns and Referral Rewards

chest

APEMARS has introduced token burns and a referral rewards system to enhance community engagement and value.

user avatarJesper Sørensen

Iran War Drives Up Borrowing Costs and Inflation

chest

The ongoing conflict in Iran has led to a significant increase in borrowing costs for US consumers, with rising mortgage rates and inflation pressures.

user avatarLucas Weissmann

Larry Fink Stresses Importance of Digital Assets for BlackRock's Future

chest

Larry Fink emphasizes the importance of digital assets in BlackRock's business strategy, identifying potential growth areas for future revenue expansion.

user avatarFilippo Romano

Lido Finance Expands Offerings with New Vaults and Earn Products

chest

Lido Finance has launched new Vaults and Earn products to diversify its offerings as Ethereum staking yields decrease.

user avatarEmily Carter

Visa and Bridge Expand Stablecoin-Linked Card Programs

chest

Visa and Bridge are set to expand stablecoin-linked debit cards to over 100 countries, enhancing access to crypto payments.

user avatarTomas Novak

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.