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 Out of 35 total applications for crypto firm registration in the past year, only 4 were approved, 15 were withdrawn, and 9 were rejected.

    Over 87% of crypto registrations were withdrawn, rejected, or refused for weak money laundering controls.None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 Over the last three years, 186 applications were withdrawn.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

Dogecoin Price Faces Key Resistance as Analysts Await Confirmation

chest

Dogecoin's price remains compressed below 0.01, with analysts predicting a significant move contingent on crucial confirmations.

user avatarMohamed Farouk

Macroeconomic Events May Propel XRP Price Higher

chest

Macroeconomic events, such as rising oil prices and tensions in the Middle East, may lead to increased interest in XRP, potentially driving its price surge to $50-$150.

user avatarMaria Fernandez

CLARITY Act Anticipated to Drive XRP Price to New Heights

chest

The upcoming CLARITY Act is expected to significantly impact XRP's market value, potentially driving its price to new heights.

user avatarElias Mukuru

Russian Supreme Court Rejects Proposed Crypto Legislation

chest

The Supreme Court of Russia has rejected the proposed bill aimed at criminalizing unregistered crypto operations due to a lack of reasoned justification for the criminal penalties outlined in the legislation.

user avatarKenji Takahashi

Russia Moves to Criminalize Unregistered Crypto Operations

chest

A new bill has been introduced in Russia to impose criminal liability on unlicensed crypto operators.

user avatarDiego Alvarez

MarketMaestro Predicts Strong Rally for Ethereum Amid Bitcoin Trends

chest

MarketMaestro predicts a bullish outlook for Ethereum, indicating a strong rally as it forms an inverse Head and Shoulders pattern.

user avatarGustavo Mendoza

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.