simply put

The UK’s Financial Conduct Authority (FCA) has approved only 38 of 291 applications from cryptocurrency firms.

The FCA has rejected 27 applications since 2020, with five firms failing to comply with money laundering regulations.

Former chancellor Philip Hammond criticised the FCA for its slow processing; his company Copper had to withdraw its application.

The UK Financial Conduct Authority (FCA) has approved only 13% of applications from cryptocurrency companies, with some companies withdrawing their registration requests citing slow processing.

Cryptocurrency companies that intend to operate in the UK must register with the FCA. However, the FCA registration process is becoming increasingly challenging for businesses.

FCA approved only 38 applications in 3 years

The UK FCA has received 291 applications from cryptocurrency firms seeking to comply with the Money Laundering, Terrorism Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) in response to a Right to Information request.

The FCA allowed only 38 firms to register out of 291 applications. This puts the approval rate at around 13%.

The FCA has rejected a total of 27 applications since 2020. Of the 27 companies, the regulator rejected five because they did not meet the MLR criteria, while the remaining 22 cryptocurrency companies were rejected for not providing the minimum required information.

According to a January 2023 FCA report, 85% of firms failed to meet the minimum standards for registration.

Cryptocurrency firms criticize FCA

The FCA also informed that 155 cryptocurrency companies withdrew their applications for various reasons, such as not providing all the required information. But former UK Chancellor of the Exchequer Philip Hammond disagrees.

Hammond, who is currently chairman of cryptocurrency exchange Copper, believes the FCA has been slow to respond to cryptocurrency firms willing to register.

Hammond also worried that the UK was falling behind in the race to become a cryptocurrency hub due to the complicated application process, and Copper withdrew from the FCA and registered in Switzerland.

Earlier this month, 75% of survey participants faced challenges with FCA registration.

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