UK FCA Reveals 87% of Crypto Firms Failed to Secure Licensing Under Money Laundering Rules
Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...
The UK Financial Conduct Authority (FCA) reported on September 3 a massive 87% failure rate among crypto firms seeking licensing under the country’s money laundering regulations in the latest fiscal year.
According to the report, only four companies, BNXA (a payments partner of Binance), a PayPal U.K. unit, and Komainu (a crypto custody joint venture of Nomura), secured approval out of 35 applications submitted between April 2023 and March 2024.
The rest were either rejected, refused, or withdrawn due to incomplete submissions or failing to meet the FCA’s rigorous standards.
Since the FCA began overseeing the crypto sector’s anti-money laundering compliance in January 2020, the regulator has processed 359 applications, but only 44 firms have successfully registered.
The FCA’s report indirectly shows many crypto firms’ difficulties during registration.
According to feedback from industry participants, long wait times, minimal feedback, and what some describe as inconsistent treatment by the FCA have made the process particularly challenging.
This has led some companies to abandon their applications or seek registration in more crypto-friendly jurisdictions, allowing them to continue serving UK customers from abroad.
One of the main criticisms of rejected applicants is the lack of transparency and clarity in the FCA’s expectations. The FCA has defended its position, noting that it provides detailed guidance to help firms understand the requirements for registration.
The regulator’s feedback indicates that many applications lacked key
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