The UK Financial Conduct Authority (FCA) has rejected the vast majority of crypto firm registration applications in the last 12 months, with over 87% of registrations withdrawn, rejected or refused due to insufficient money laundering controls. Out of 35 applications, only 4 were approved, while 15 were withdrawn and 9 were rejected by the regulator.

According to the FCA's 2024 annual report, crypto firms struggled to meet the standards set by the financial watchdog, particularly in the areas of fraud protection and money laundering compliance. The regulator stated that it had rejected submissions that lacked key components necessary for assessment or were of poor quality.

In response to the issues, the FCA finalized a new "financial promotion perimeter" for crypto advertising in the UK in June 2023, aiming to ensure that crypto ads are clear, fair, and not misleading. This move is part of the regulator's efforts to improve transparency and protect consumers in the rapidly evolving cryptocurrency market.

Source: https://cointelegraph.com/news/87-percent-crypto-registrations-failed-uk-money-laundering-controls

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