UK’s FCA Speeds Up Crypto Firm Approvals, Boosts Approval Rate to 45%

The UK regulator has cut approval times by nearly 70% since 2023, though fewer firms are applying amid expectations of upcoming legislation and global regulatory competition.

BRETT

Summary

The UK’s Financial Conduct Authority (FCA) has reduced average crypto registration approval times by 69% since 2023, falling from 511 days in 22/23 to 158 days in 24/25. However, applications have dropped 43.5% over two years, from 46 in 22/23 to 26 in 24/25, with approvals also declining from eight to three. Approval rates fell from 17.4% to 11.5% over the same period. Industry groups such as CryptoUK welcomed faster processing, though concerns remain about declining participation and perceived barriers for SMEs. Fewer firms are withdrawing applications, dropping from 70 to 15. Experts suggest firms may be delaying applications until new UK legislation is finalized. The FCA also launched a consultation on minimum standards for crypto firms to strengthen oversight and align practices with traditional finance.

Terms & Concepts
  • Cryptoasset Service Provider: A business offering services such as cryptocurrency exchanges or custody, requiring registration with regulators like the FCA.
  • Stablecoin: A cryptocurrency pegged to a stable asset, such as fiat currency, designed to reduce volatility.