UK Financial Conduct Authority Accelerates Crypto Approvals Amid Declining Applications

The UK's Financial Conduct Authority has slashed crypto registration processing times by 69% since 2022, even as application volumes continue their downward trajectory. Only three firms gained approval in the current financial year—a sharp decline from eight approvals two years prior.

Total submissions have dwindled from 46 to 26 over the same period, reflecting industry caution as regulatory frameworks evolve. The approval rate now stands at 11.5%, down from 17.4% in 2022/23. Market participants appear to be adopting a wait-and-see approach rather than engaging with the current regulatory environment.

While processing efficiency has improved markedly, the data suggests waning interest from crypto service providers in pursuing UK registration. This trend may reverse as regulatory clarity emerges, potentially triggering a new wave of applications from exchanges and other market participants.