TLDR
- The UK FCA has reduced the time to approve crypto firm applications by two-thirds.
- The acceptance rate for crypto registrations has increased to 45%, up from less than 15%.
- The FCA cleared registrations for five firms, including BlackRock and Standard Chartered, since April.
- Crypto application numbers fell from 46 in 2023 to 26 in 2025, showing a decline in interest.
- The FCA now offers pre-approval meetings to help firms navigate the registration process.
The UK Financial Conduct Authority (FCA) has significantly sped up its crypto application approval process, responding to years of industry complaints. Since April, the regulator has cleared the registrations of five firms, including BlackRock and Standard Chartered. This marks a substantial improvement in the FCA’s crypto approval rate, which had previously been under scrutiny for its slow pace.
Crypto Applications to FCA Drop Sharply
The FCA has reduced its crypto registration approval time by two-thirds. Firms now complete the process in just over five months, down from 17 months two years ago. This change comes after crypto firms complained about the regulator’s slow pace and high rejection rates.
The approval rate for crypto registrations has also improved sharply, now standing at 45%. This is a notable increase from less than 15% over the past five years. The FCA’s swift action has led to faster processing times, with approvals now granted in a much shorter period.
Despite the improvements, the number of crypto applications to the UK FCA has decreased. Applications fell from 46 in the year to April 2023 to just 26 in the year to April 2025. The total number of approvals also dropped, with only three approvals in 2024-25 compared to eight the previous year.
Crypto Firms React to New Regulatory Environment
The FCA’s quicker processing is part of a broader push to create a more accommodating regulatory framework for crypto businesses. The UK is seeking to catch up with the US and EU, which have already made strides in crypto regulation. As part of this effort, the FCA now offers pre-approval meetings to help crypto firms with their applications.
Lawyers and executives believe the upcoming 2026 regulatory framework may also be contributing to the drop in applications. Many firms are choosing to wait for the new regulations before applying for approval. This approach may allow firms to better align with the new rules and streamline their operations in the UK.
Despite the lower number of applications, the FCA remains cautious about the risks posed by the crypto market. It continues to prioritize the prevention of financial crime, including money laundering and terrorist financing. As part of this effort, crypto firms must demonstrate full compliance with the FCA’s rules to be approved.
Regulatory Framework Set for 2026 Launch
The FCA plans to launch a full regulatory framework for crypto assets in 2026. This new framework aims to provide clear, consistent rules for crypto businesses operating in the UK. The FCA has already begun consultations to determine how these rules will apply to digital assets.
The regulator’s approach aims to align crypto firms with the same standards as traditional financial institutions. However, it is also considering carve-outs to account for the crypto sector’s unique nature. This balance aims to ensure that regulation supports innovation while effectively managing risks.
The FCA’s proactive approach and commitment to streamlining the process have received mixed reactions. Some firms welcome the faster approvals, while others prefer to wait for the more transparent regulatory framework set for 2026.
