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 Out of 35 total applications for crypto firm registration in the past year, only 4 were approved, 15 were withdrawn, and 9 were rejected.

    Over 87% of crypto registrations were withdrawn, rejected, or refused for weak money laundering controls.None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 Over the last three years, 186 applications were withdrawn.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

Danske Bank Begins Offering Customers Access to Bitcoin and Ether

chest

Danske Bank, Denmark's largest bank, has started offering customers access to Bitcoin and Ether through exchange-traded products in response to growing demand for cryptocurrency.

user avatarRajesh Kumar

Danish Banks' Reluctance to Embrace Cryptocurrency Affects Ownership Rates

chest

Danish banks have restricted access to cryptocurrency, leading to only 4% of citizens owning crypto, compared to over 10% in countries like Norway and the UK.

user avatarGustavo Mendoza

Concerns Rise Over Delay in CLARITY Act Markup

chest

Concerns rise over the delay in the markup of the CLARITY Act by the Senate Banking Committee, which has been postponed to late April or mid-May, raising fears about the bill's future.

user avatarMaria Fernandez

ETH Staking Market Cap Reaches New Heights Amid Bullish Trends

chest

The Ethereum staking ecosystem has seen remarkable growth, with its market cap soaring to $852 billion.

user avatarMiguel Rodriguez

BPI Proposes New Policy for Stablecoin Supremacy in the US

chest

The Bitcoin Policy Institute (BPI) has proposed a new policy for establishing stablecoin supremacy in the US, focusing on enhancing oversight over offshore dollar markets and reducing systemic risks.

user avatarLuis Flores

Saxony May Access Additional 57,000 Bitcoin in Movie2k Case

chest

A proposed court deal in the movie2k case could allow Saxony to access an additional 57,000 Bitcoin, raising concerns about state-controlled supply in the market.

user avatarArif Mukhtar

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.