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 Out of 35 total applications for crypto firm registration in the past year, only 4 were approved, 15 were withdrawn, and 9 were rejected.

    Over 87% of crypto registrations were withdrawn, rejected, or refused for weak money laundering controls.None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 Over the last three years, 186 applications were withdrawn.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

Clarity Act Progress and Ripple's Strategic Positioning

chest

The proposed Clarity Act aims to provide clearer legal classifications for digital assets, which could benefit Ripple's ecosystem.

user avatarEmily Carter

Current Stage of Bitcoin Bear Market and Future Predictions

chest

Doctor Profit indicates that Bitcoin is currently in Stage 4 of the bear market, predicting further declines.

user avatarTomas Novak

Uber Launches New Services for Autonomous Vehicle Developers

chest

Uber launches Uber Autonomous Solutions to assist autonomous vehicle developers in connecting to its ride-hailing network, aiming to compete with Tesla in the robotaxi market.

user avatarKaterina Papadopoulou

XRP Faces Significant Correction Amid Market Panic

chest

XRP has plunged 69% from its recent high, causing widespread panic in the market, but analysts suggest this could be a setup for a major turnaround.

user avatarMaya Lundqvist

Conflicting Signals in Bitcoin Market: No Real Rally in Sight

chest

Recent analysis by data analyst CW indicates that key on-chain signals for Bitcoin show no genuine rally has begun, despite short-lived increases driven by speculation.

user avatarLeo van der Veen

XRP Price Approaches Potential Bottom Amid Major Capitulation Event

chest

XRP has recorded its largest realized loss spike since 2022, indicating a potential price bottom and recovery.

user avatarLi Weicheng

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.