The UK’s Financial Conduct Authority (FCA) reported that 87% of cryptocurrency companies seeking licenses under the country’s anti-money laundering regulations failed to secure approval in the most recent fiscal year.
In its annual report, the FCA revealed that out of 35 applications received by the regulator for the year ending March 31, only four were granted approval. Among those that successfully registered were BNXA, Binance‘s payments partner; a PayPal UK unit; and Komainu, a crypto custody joint venture with Nomura. The remaining applications were either denied or failed due to incomplete submissions.
“Over 87% of crypto registrations were rejected, withdrawn, or refused,” the FCA noted. “We assist firms by providing guidance on our expectations and good and poor practices. This guidance is helping firms understand the requirements—currently, 44 crypto firms hold money laundering registration.”
The FCA has been regulating the crypto industry and handling licensing under its anti-money laundering rules since 2020. However, the regulator is still awaiting legislation that would allow it to authorize companies to operate within the UK. The recent election of a new Labour government in July has resulted in a delay of crypto-related legislative plans.
Since January 2020, the FCA has received 359 applications from crypto companies, with only 44 successfully registered.
Some companies that did not receive FCA approval have criticized the registration process, citing prolonged wait times, insufficient feedback, and perceived unfair treatment by the regulator. These delays have led some crypto firms to relocate abroad to continue serving UK customers from overseas.
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