The Financial Conduct Authority (FCA) has revealed that nearly 90% of cryptocurrency firms applying for registration in the United Kingdom over the past year have been turned down by the regulator. The high rejection rate stems from the firms' failure to meet necessary standards, particularly in areas related to fraud prevention and anti-money laundering protocols.

The FCA report states that only 4 of the 35 crypto firm applications submitted in the last 12 months were approved, while 15 applications were withdrawn and 9 were outright rejected due to inadequate compliance with regulatory requirements. "Over 87% of crypto registrations were withdrawn, rejected or refused for weak money laundering controls," the report detailed.

The regulator also noted that several submissions lacked essential components necessary for a proper assessment, and some were invalid due to poor quality submissions. In an effort to ensure greater consumer protection, the FCA introduced a new "financial promotion perimeter" in June 2023, aiming to make crypto advertising more transparent, fair, and not misleading. The report also indicated that the UK public is becoming more cautious regarding cryptocurrency investments, with 63% of consumers reporting scams before investing, a 5% rise from the previous year.

Source: https://99bitcoins.com/news/uk-financial-watchdog-rejects-almost-90-of-crypto-firms-seeking-registration/

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