- FCA Registration: Challenges and Statistics
- FCA Process Improvements
- Future of the Crypto Industry in the UK
The lengthy registration process for crypto firms in the UK is deterring business, according to CryptoUK.
FCA Registration: Challenges and Statistics
Since January 2020, firms carrying out crypto asset activities in the UK have been required to register with the Financial Conduct Authority (FCA). According to Cointelegraph, 87% of crypto firm registrations in the UK have failed over the last 12 months due to weak fraud protection and Anti-Money Laundering safeguards. Only four out of the 35 applications were approved, with 15 applicants withdrawing their applications.
FCA Process Improvements
In August, international law firm Reed Harris revealed that the FCA takes an average of 459 days to process a single registration. However, the last 12 months have seen improvements, with only two cases taking longer than six months to determine. Merkle Science stated that the FCA demands extensive information and documentation, making the process challenging for many firms.
Future of the Crypto Industry in the UK
The number of applications for crypto registration is decreasing in the UK. Between May 2023 and April 2024, only 29 applications were received, compared to 42 the previous year and 59 the year before. This raises concerns that the UK might lose out to more crypto-friendly regions. Experts believe that to stay competitive, the country must improve dialogue between regulators and the industry.
The crypto industry in the UK faces challenges due to stringent FCA requirements. However, improvements in the process are already observable, and there is hope for further collaboration and support from regulators.
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