The UK Financial Conduct Authority (FCA) has reported that since January 2020, only 38 out of 291 registration applications from crypto companies have been approved. This figure represents a mere 13% success rate for businesses looking to operate in the cryptocurrency sector in the UK.

According to a report published by Cointelegraph, on August 11, the FCA revealed these statistics in response to a right-to-know request, which sought information on cryptoasset business registration. A significant number of applications (155) were withdrawn by the companies themselves due to not meeting all necessary criteria. The FCA encourages these firms to resubmit their applications at a later stage.

Cryptoasset businesses in the UK must either be registered with the FCA or have been granted temporary operational status to conduct crypto asset activities. The FCA previously ordered Binance Markets Limited to cease operations in the country and issued warnings for local crypto ATM operators to shut down or face further action.

As of now, the FCA's list of registered crypto asset providers includes 42 entities, with well-known companies such as Skrill, eToro, and Gemini among them. In July, the FCA reminded crypto asset firms to comply with its financial promotions regime by October 2023 and advised businesses to adopt a marketing approach that allows customers a "cooling-off period" to weigh the risks of investing in digital assets.

The FCA has disclosed that only 13% of crypto business registration applications since January 2020 have been approved, highlighting the UK regulator's stringent requirements for cryptocurrency companies. These firms must comply with the FCA's regulations and financial promotions regime to operate legally in the country.