The United Kingdom has 42 licensed crypto service providers.
The Financial Conduct Authority (FCA), the primary financial regulator of the United Kingdom, has shed light on the crypto registration figures, highlighting a low success rate for applicants.
Upon responding to a recent right-to-know inquiry, the FCA's statistics concerning the crypto asset business revealed that since 2020 from a whopping 291 applicants, a mere 38 were granted permission to operate within the UK, marking a 13% approval rate.
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Interestingly, the majority of the applications, 155 in particular, were voluntarily pulled back by the applying companies. The FCA has been known to encourage firms to reconsider their applications and address gaps before reapplying. In their statement, the FCA mentioned:
Firms are required to provide the minimum information set out under regulation 57 of the MLRs, any firm that has not provided the required information will have their application rejected.
Crypto businesses in the UK must either acquire FCA registration or attain a temporary operating status to "carry out crypto asset activities."
Notably, in the past, the FCA has directed Binance Markets Limited to suspend its UK operations and handed out ultimatums to local crypto ATM operators to either cease operations or face intensified measures.
Notable entities, such as Skrill, eToro, and Gemini, can be found on the FCA’s list of approved crypto asset providers, which currently stands at 42.
Additionally, a recent directive from the FCA prompted all crypto entities in the country to align their marketing strategies with the authority's financial promotions guidelines, with a compliance deadline set for October 2023. This move is in line with the FCA's earlier advice for crypto businesses to incorporate a "cooling-off period" in their marketing initiatives, granting potential investors adequate time to weigh the inherent risks of crypto.
The low approval statistics underscore the rigorous standards the FCA upholds for crypto businesses operating in the UK. As the landscape evolves, firms will likely need to adapt, ensuring complete compliance and more transparency in their operations to gain regulatory approval.
