FCA Approves Just 4 of 35 Cryptocurrency Licensing Applications

The UK Financial Conduct Authority (FCA) has reported a significant rejection rate for cryptocurrency licensing applications, approving only 4 out of 35 submitted in the last financial year. This translates to a staggering 87% of applications failing to meet the FCA's stringent approval standards.

The decline in successful applications reflects a broader trend; over the past three years, the number of crypto firms seeking registration in the UK has dropped by 51%. The average time taken for approval has reached 459 days, comparable to full banking licenses, which has deterred many firms from applying. As a result, 186 companies have withdrawn their applications due to the lengthy and complex process.

Among the few firms that received approval are notable names such as Binance's UK partner BNXA, a PayPal unit, and Komainu, a joint venture with Japan's Nomura. Industry experts warn that the FCA's rigorous regulatory framework could undermine the UK's ambition to become a global crypto hub. If the approval process remains slow, many firms may seek more favorable conditions abroad, raising concerns about London's competitiveness in the crypto market.