UK FCA Accelerates Crypto Approval Process Following Industry Backlash
Regulatory gears finally start turning as UK financial watchdog responds to mounting pressure.
The Acceleration Push
Britain's Financial Conduct Authority is cutting through red tape after facing sharp criticism for sluggish cryptocurrency firm registrations. The regulator's new streamlined approach aims to process applications faster without compromising oversight standards.
Industry insiders report noticeable improvements in response times—though some wonder if this sudden efficiency stems from genuine reform or just fear of becoming irrelevant in the rapidly evolving digital asset space.
Behind the Scenes Shift
The FCA's overhaul includes simplified documentation requirements and dedicated crypto assessment teams. They're bypassing traditional bureaucratic hurdles that previously left companies waiting months for basic approvals.
One banking executive quipped, 'Nothing motivates regulators like the threat of being left behind while real innovation happens elsewhere.' The move comes as global financial hubs compete to attract blockchain businesses.
Market Impact
Faster approvals could unleash pent-up demand from digital asset firms seeking UK market access. The regulatory shift signals growing institutional acceptance of cryptocurrencies—even if traditional finance veterans still view crypto with a mix of curiosity and contempt.
Will this newfound agility last? Only time will tell if this is meaningful change or just regulatory theater designed to quiet critics while maintaining control. After all, nothing moves slower than a government body—except maybe a banker understanding DeFi.
Faster approvals after years of delays
The UK’s FCA pledged to update its approach to cryptocurrency registrations, promising faster approvals and a more accessible process after years of being criticized by the cryptocurrency industry.
Simon Jennings, the executive director of the UK Cryptoasset Business Council, said, “We’ve seen first-hand that even multibillion-dollar firms can spend years trying to secure UK authorization — and the reality is, they won’t wait around forever.”
Former chancellor George Osborne, now an adviser to Coinbase, has also weighed in saying, “On crypto and stablecoins, as on too many other things, the hard truth is this: we’re being completely left behind. It’s time to catch up.”
Since April, the FCA has approved the registrations of five crypto companies, including BlackRock and Standard Chartered, while rejecting or seeing the withdrawal of six others. With that, the acceptance rate ROSE to 45% compared with less than 15% in the previous five years.
According to data released to the Financial Times, the average processing time for successful applications has also dropped dramatically. Companies that registered in the past year completed the process in just over five months, compared with an average of 17 months for those approved two years earlier.
David Geale, the FCA’s executive director for payments and digital finance, said the agency had “made a conscious effort to put resources into this.”
“We have sped up our authorizations across the piece and have made some quite significant progress.” Geale added.
The FCA introduced pre-approval meetings, roundtables and webinars to guide applicants through the process, while also encouraging firms to submit stronger applications. “What we tend to get is a better quality of application and that certainly speeds things up,” Geale said.
Decline in applications despite improvements
While approvals are accelerating, the number of companies applying to register has fallen sharply. In the year to April 2023, 46 applications were filed. By April 2025, that figure had dropped to 26.
Approvals also slid from eight in 2022–23 to just three in 2024–25, before rebounding slightly in the past six months.
Industry observers believe this slowdown is due to companies delaying submissions ahead of the planned complete crypto regulatory framework that is expected to be introduced next year in the UK.
“I don’t think interest in the UK has dropped, but I do think it’s possible that some firms are pausing to take stock and see how its crypto regulation develops.” BRETT Hillis, a partner at Reed Smith, said.
The FCA itself suggested that the prospect of broader rules may be influencing timing decisions.
The FCA’s recent efforts include inviting newly registered companies to share their experience. Raphael Landesmann, regulatory counsel at crypto trading firm GSR, said the firm had been asked to advise others at an FCA workshop after its successful registration in December.
“We have seen very considerable efforts by the FCA in that regard,” he said.
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