UK Regulator Ramps Up Crypto Approvals As Applications Drop

Core Insights - The UK's Financial Conduct Authority (FCA) has reduced the average time for crypto registration application approvals by 69% since 2023, now averaging 158 days compared to 511 days in the 22/23 financial year [4] - Despite the faster approval process, there has been a 43.5% decline in the number of applications submitted over the past two years, with successful applications dropping from eight in 22/23 to three in 24/25 [1][2] - The FCA's approval rate has also decreased from 17.4% in 22/23 to 11.5% in 24/25, reflecting a decline in total applications received [3] Application Trends - The total number of applications received by the FCA has decreased from 46 in 22/23 to 26 in 24/25 [3] - The number of firms withdrawing applications has significantly reduced, from 70 in 22/23 to 15 in 24/25, indicating improved confidence in the application process [6] Industry Response - Representatives from the UK cryptocurrency industry, such as CryptoUK, have welcomed the faster application process, believing it will enhance confidence among crypto-related businesses [5] - The Executive Director of the UK Cryptoasset Business Council noted that the FCA has improved its internal knowledge and resources, contributing to the expedited process [7] - However, there remains a concern regarding the declining number of applications, attributed to ongoing perceptions of lengthy timelines and uncertainty in the regulatory environment [7]