The UK financial watchdog has accelerated its review of crypto applications, cutting approval times by two-thirds and lifting its acceptance rate after years of criticism from industry players.
Since April, the Financial Conduct Authority (FCA) has cleared the registrations of five firms, among them US investment giant BlackRock and UK lender Standard Chartered, the Financial Times reported.
Six other applications were rejected, refused or withdrawn, the outlet said, citing data retrieved from the agency.
The acceptance rate now stands at 45%, a sharp rise from less than 15% in the previous five years when the regulator faced complaints of moving too slowly and approving too few applications.
Fewer Firms Apply As FCA Rules Bite
Despite the improvement, fewer crypto firms are seeking entry into the UK market. Applications fell from 46 in the year to April 2023 to 26 in the year to April 2025.
Approvals also dropped from eight in 2022-23 to just three in 2024-25, though the pace has picked up again in recent months.
Since 2020, all firms looking to conduct crypto asset activities in Britain have been required to register with the FCA. They must demonstrate compliance with the regulator’s rules on preventing financial crime, including money laundering and terrorist financing.
Quicker Authorizations Highlight UK Effort To Catch Up
According to figures released after a freedom of information request by law firm Reed Smith, crypto providers registering in the past year completed the process in just over five months on average. Two years earlier, it typically took 17 months, the FT said.
The quicker approvals come as the FCA prepares to launch a full regulatory framework for digital assets in 2026. Regulators in London are under pressure to create a more welcoming environment as the US and EU race ahead with more accommodative policies.
The FCA has added 55 companies to its register but remains cautious about the risks posed by the market. By contrast, US and EU regulators have been faster to approve products such as exchange-traded funds in Bitcoin and other digital assets, opening the door to retail investors.
FCA Weighs Sector-Specific Exemptions While Setting Baseline Rules
In an effort to ease the path for applicants, the FCA has recently begun offering preapproval meetings with case officers to help firms prepare their submissions. It has also hosted roundtables and webinars to clarify expectations around the registration process.
Last week, the regulator opened a consultation on applying the same regulatory standards to crypto firms as to traditional financial institutions. The plan seeks to establish baseline rules while weighing carve-outs that reflect the sector’s distinct features.
Some lawyers and executives say the looming launch of a broader regulatory framework may have contributed to the fall in applications. Companies may prefer to wait for the new rules before pursuing approval, betting that a clearer regime could make it easier to operate in Britain.
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