The UK’s Financial Conduct Authority (FCA) is accelerating its approval process for crypto firms after years of industry frustration over sluggish timelines and low acceptance rates. According to new data, the watchdog has cut authorization times by two-thirds, lifted its acceptance rate, and recently cleared high-profile firms such as BlackRock and Standard Chartered.
Since April, the FCA has approved the registrations of five crypto firms, the Financial Times reported. Six others, however, were rejected, refused, or voluntarily withdrawn. The regulator’s acceptance rate now stands at 45%, a sharp improvement from less than 15% in the previous five years. This shift comes after mounting complaints that the FCA had been too slow to grant approvals, stifling innovation in the UK crypto sector.
Fewer Firms Applying Amid Stricter Oversight
Despite progress, fewer companies are entering the approval pipeline. Applications dropped from 46 in the year to April 2023 to just 26 in the year to April 2025. Similarly, approvals declined from eight in 2022-23 to only three in 2024-25, though activity has rebounded in recent months.
One reason for the slowdown is the FCA’s strict requirements. Since 2020, all firms wishing to engage in crypto asset activities in the UK must register with the regulator and comply with anti-money laundering and counter-terrorist financing rules. These safeguards, while designed to protect financial stability, have deterred some firms from applying.
Approval Times Fall as UK Seeks Competitive Edge
Figures released through a freedom of information request by law firm Reed Smith revealed that crypto providers registering in the past year completed the process in just over five months, compared with 17 months two years earlier. The faster pace reflects the FCA’s attempt to balance caution with competitiveness as London seeks to position itself as a global hub for digital assets.
The improvements come as the FCA prepares to roll out a full regulatory framework for crypto in 2026. Policymakers in the UK are under pressure to keep up with the US and EU, which have moved faster in authorizing products like spot Bitcoin exchange-traded funds (ETFs) and setting clearer rules for crypto companies.
Regulator Balances Baseline Rules with Flexibility
To smooth the process further, the FCA has introduced preapproval meetings with case officers, alongside roundtables and webinars to help firms navigate requirements. Last week, it also opened a consultation on applying the same standards to crypto firms as traditional financial institutions while considering sector-specific exemptions to reflect the industry’s unique dynamics.
Some industry lawyers suggest that the looming 2026 framework may be prompting companies to hold back on applications, anticipating a more transparent regime in the near future. For now, however, the FCA’s faster approvals signal that the UK is trying to catch up in the race to attract global crypto business, while still keeping a cautious eye on risk.