What happened?
The UK Financial Conduct Authority (FCA) has expedited its review of crypto applications. Approval times have been reduced by two-thirds and the acceptance rate has risen sharply to 45%, up from less than 15% over the past five years. This follows industry criticism for sluggish processing and low approval rates. Among the cleared firms are U.S. investment giant BlackRock and UK lender Standard Chartered.
Who does this affect?
This impacts all firms intending to transact in crypto activities within the UK, as since 2020 it has been a requirement to register with the FCA. Despite improvements in the approval process, fewer crypto firms are applying to enter the UK market, with applications dropping from 46 to 26 over the last two years. It also indirectly impacts retail investors, as the FCA’s cautious stance contrasts with the US and EU’s quicker product approvals such as Bitcoin exchange-traded funds.
Why does this matter?
This matters as it signifies the UK’s efforts to catch up with the US and EU in terms of crypto regulation. The more efficient approval process comes in preparation for a full regulatory framework for digital assets set to launch in 2026. Faster authorizations and other measures like preapproval meetings, roundtables, and webinars aim to provide a more accommodative environment for crypto business while maintaining stringent rules on preventing financial crime.