Since January 2020, a total of 291 cryptocurrency companies have pursued official registration with the UK’s primary financial oversight body, the Financial Conduct Authority (FCA).

Yet, the journey to legal operation has been far from straightforward. Among these applicants, only a meager 13% have successfully gained authorization to conduct business within the UK.

On August 11th, the FCA responded to queries about crypto registration statistics. They revealed that since 2020, they have received 291 applications for registration.

Astonishingly, only 38 applications were approved. Notably, a significant chunk of the applications (155) were voluntarily withdrawn by the companies themselves.

This step was influenced by the FCA’s practice of advising firms to reapply once the requisite criteria were met.

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The FCA clarified that firms must provide the minimum information as specified in Regulation 57 of the MLRs. Any firm failing to provide the required information would see their application rejected.

In the UK, companies engaged in “crypto asset activities” must either register with the FCA or gain temporary operating privileges. Binance Markets Limited was previously directed to halt operations in the UK, while local operators of cryptocurrency ATMs were issued ultimatums to cease activity.

Currently, the FCA’s roster includes 42 officially registered crypto asset providers, including names like Skrill, eToro, and Gemini. In July, the FCA reaffirmed the obligation for all crypto businesses to align marketing strategies with financial promotion regulations by October 2023.

The FCA’s stringent approach reflects the broader global trend of regulators tightening their grip on the cryptocurrency sector to ensure investor protection and prevent illicit activities.