British Regulator Reveals 13% Crypto Registration Approval Rate
3 min read
British Regulator Reveals 13% Crypto Registration Approval Rate
The cryptocurrency industry has been under increased scrutiny worldwide as regulators and governments aim to establish clear rules and guidelines for the burgeoning sector. In the United Kingdom, the Financial Conduct Authority (FCA) has recently disclosed some eye-opening statistics regarding the registration of crypto-related applications. According to the FCA, only 13% of the applications received have been approved, shedding light on the strict regulations that companies in the crypto space must adhere to.
The FCA, the regulatory body responsible for overseeing the financial sector in the UK, has been in charge of the registration process for crypto businesses since January 2020. This move was designed to ensure that crypto companies operating in the country comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.
Out of the total 167 applications received as of the end of June 2021, only 22 have been approved, while 90 firms have been told to cease their operations immediately. The remaining applications are either under review or awaiting additional information, as the FCA continues to scrutinize their compliance with the rigorous regulations.
The low approval rate is a clear reflection of the FCA’s commitment to maintaining a high standard in the crypto industry. It also highlights the significant obstacles that businesses must overcome to gain regulatory approval. The FCA’s focus on AML and CTF measures is undoubtedly a positive step towards combating illicit activities in the crypto space.
The low approval rate also raises concerns about the potential stifling of innovation in the industry. As the FCA continues to crack down on unregistered or non-compliant companies, legitimate businesses that are pushing the boundaries of crypto technology may suffer from the stricter regulations. Striking the right balance between regulation and fostering innovation will be crucial for the future of the crypto industry in the UK.
It is worth noting that the FCA’s registration process has not been without its challenges. The regulator had to extend the temporary registration regime for crypto companies from July 9, 2021, to March 31, 2022, due to the overwhelming number of applications and the complexity involved in the assessment process. This extension is aimed at ensuring that entities can continue to operate while their applications are under review.
The FCA’s efforts to regulate the crypto industry should not be viewed as an attempt to discourage its growth or undermine its potential. Instead, it highlights the importance of striking a balance between fostering innovation and protecting investors and the financial system from potential risks.
The FCA is actively engaging with the crypto industry, providing guidance and support for businesses to navigate the complex regulatory landscape. It has also launched a digital asset business register, allowing consumers to check whether a company is registered with the FCA and to report any suspicious activities.
While the approval rate may appear low, the FCA’s stringent regulations will ultimately enhance the credibility and legitimacy of the crypto industry. Investors and consumers can feel more confident engaging with registered companies, knowing that they have undergone a thorough evaluation of their compliance measures.
As the crypto sector continues to evolve and mature, it is expected that the FCA’s approval rate will increase. Businesses in the industry need to prioritize compliance and ensure that they meet the regulatory requirements to boost their chances of approval. The FCA’s disclosure of registration statistics serves as a reminder that the crypto industry must work in tandem with regulators to build a robust and sustainable future.
These regulations are suffocating the industry. The FCA needs to reconsider their approach and find a better balance. 🚫🌬️
This is ridiculous! Only 13% of applications approved? The FCA is clearly stifling innovation in the crypto industry.
It’s disheartening to see so many businesses struggling to gain approval. The FCA needs to make the process more streamlined. 🥺🙏
While it’s important to regulate the industry, let’s hope that the FCA finds a way to nurture innovation as well. Striking that balance will be key for the future of crypto in the UK!
The FCA’s tough regulations are making it nearly impossible for new crypto companies to enter the market. It’s unfair and discouraging. 😖💔
It’s clear that complying with regulations is a must for businesses in the crypto sector. Prioritizing compliance will not only boost their chances of approval but also enhance the trust of investors and consumers.
The FCA’s focus on compliance is important, but they should also consider the impact on the growth of the industry.
I can’t believe that so many companies have been told to cease operations immediately. The FCA needs to reconsider their approach.
The low approval rate shows that the FCA is serious about cracking down on illicit activities in the crypto space. Investing our trust in approved companies is vital for the industry’s credibility.
These regulations are hindering the industry’s progress. The FCA needs to find a way to encourage innovation while protecting consumers. 🚫🆘
The FCA’s strict approach is only driving businesses away from the UK. This is detrimental to the country’s economy.
It’s disappointing to see the FCA hampering the growth of the crypto industry. Innovation should be supported, not discouraged.
It’s a shame that the FCA is making it so difficult for crypto companies to operate. This will only discourage investment in the UK.
The FCA’s low approval rate is a clear sign that they are not supporting the growth of the crypto industry. This is disappointing.
The FCA’s efforts to regulate the crypto industry should be seen as a positive step toward global acceptance and adoption. Let’s work together to build a sustainable future for cryptocurrencies!
This is just another example of excessive government regulation hampering an industry’s potential. It’s time for a change.
The FCA’s strict regulations are holding back progress in the crypto industry. They should focus on fostering innovation rather than hindering it. 🚫⚙️
Wow, it’s great to see the FCA taking such stringent measures to ensure the crypto industry operates responsibly and ethically!
These regulations are killing the crypto industry in the UK. The FCA needs to find a better balance between control and innovation. 💔⚖️
Kudos to the FCA for providing guidance and support to crypto businesses! The digital asset business register is a great tool for consumers to ensure they engage with legitimate companies.
It’s frustrating to see legitimate businesses being held back by the FCA’s regulations. Innovation should be encouraged, not stifled.