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 Out of 35 total applications for crypto firm registration in the past year, only 4 were approved, 15 were withdrawn, and 9 were rejected.

    Over 87% of crypto registrations were withdrawn, rejected, or refused for weak money laundering controls.None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 Over the last three years, 186 applications were withdrawn.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

Institutional Strategies Focus on Long-Term Stability

chest

Institutions are shifting their strategies to focus on long-term stability rather than rapid gains in cryptocurrency investments.

user avatarJesper Sørensen

Chainlink's Future Depends on Tokenization Progress

chest

Chainlink continues to thrive in real-world asset tokenization, benefiting from enterprise partnerships and trials. However, market analysts warn that the future of Chainlink heavily depends on how quickly tokenization moves from early trials into full production.

user avatarRajesh Kumar

Analyst Highlights Supply Air Gap for Solana

chest

Analyst Ali Martinez highlights a significant supply air gap for Solana below the price level of 144, indicating a lack of major onchain support levels until much lower.

user avatarLucas Weissmann

Solana's Price Dynamics and Support Levels Analyzed

chest

Ali Martinez discusses how retests impact Solana's price dynamics, highlighting the importance of market sentiment for investors.

user avatarFilippo Romano

Solana SOL Stands Out as a Strategic Investment

chest

Solana SOL is recognized for its high throughput and low transaction costs, making it a strong platform-level investment.

user avatarEmily Carter

La Culex CULEX Merges DeFi and NFTs

chest

La Culex CULEX is innovating by combining DeFi and NFTs, enhancing its token use cases.

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.