Financial Conduct Authority (FCA), the UK’s primary financial regulator, has only granted 13% approval out of nearly 300 crypto companies that have applied for registration to operate in the country.
The FCA published a response to a right-to-know request whose author remains anonymous on August 11. Four queries regarding the registration statistics of crypto asset businesses were considered in the request.
Since 2020, the regulator has received 291 registration applications but has only authorized 38 of them. The majority of applications, 155, were withdrawn by the firms themselves because the FCA encourages firms to resubmit applications if they do not meet all of the criteria. As explained by the governing body:
“Firms are required to provide the minimum information set out under regulation 57 of the MLRs. Any firm not providing the required information will have their application rejected.”
In the United Kingdom, firms permitted to “carry out crypto asset activities” must be registered with the Financial Conduct Authority (FCA) or granted interim operating status.
Previously, the FCA had ordered Binance Markets Limited to cease operations in the country and issued “shut down or face further action” orders to local proprietors of cryptocurrency ATMs. At publication, the FCA’s list of registered crypto asset providers included 42 entities, including Skrill, eToro, and Gemini.
IN JULY, the FCA reminded all crypto asset firms in the United Kingdom that their marketing strategies must comply with its financial promotions regime by October 2023.
Previously, it was recommended that crypto firms implement a marketing strategy that provides customers with a “cooling-off period” to consider the risks associated with investing in digital assets.
