The UK’s Financial Conduct Authority (FCA) has sped up its review process for crypto firms, cutting approval times by two-thirds and raising acceptance rates after years of industry criticism.
Key points:
- The FCA has sped up crypto approvals, cutting review times from 17 months to just over five months, and raised the acceptance rate to 45%.
- Despite faster approvals, applications from crypto firms are declining, dropping from 46 in 2023 to 26 in 2025, though recent months show an uptick.
- UK-US cooperation on crypto is growing, with talks on regulation, investment, and a Trump-Starmer MOU for AI, nuclear, telecoms, and quantum development.
According to a report by the Financial Times, the financial regulator has approved registrations for five crypto firms since April, including global asset manager BlackRock and British bank Standard Chartered.
However, data from the regulator shows that six additional applications were rejected, refused, or withdrawn. This brings the current approval rate to 45%, a marked increase from under 15% over the past five years, when the agency faced criticism for slow processing and low approval numbers.
Despite the higher approval rate, interest from crypto firms in entering the UK market has declined, with applications falling from 46 in 2023 to 26 in 2025. Approvals also decreased from eight in 2022-2023 to just three in 2024-2025, although the regulator has noted a recent uptick in approvals in the past few months.
From 2020, any firm aiming to offer crypto asset services in the UK must register with the FCA and demonstrate compliance with regulations designed to prevent financial crime, including money laundering and terrorist financing.
Per the Financial Times, data obtained by law firm Reed Smith shows that crypto firms registering in the past year completed the FCA approval process in just over five months on average, a sharp improvement from the roughly 17 months it took two years ago.
The FCA has added 55 companies to its crypto register while maintaining a cautious stance on market risks. To streamline applications, the regulator now offers preapproval meetings with case officers to guide firms through submissions and has hosted roundtables and webinars to clarify registration requirements.
Furthermore, the acceleration of approvals for crypto firms coincides with the FCA’s plans to introduce a comprehensive digital asset regulatory framework in 2026. UK regulators face mounting pressure to foster a more competitive environment as the U.S. and EU advance with more supportive crypto policies.
Last week, UK Chancellor Rachel Reeves and U.S. Treasury Secretary Scott Bessent met to explore closer cooperation in the crypto sector, focusing on digital asset regulation and ways to attract more investment to the UK. Reports indicate that Britain is weighing elements of the Trump administration’s pro-crypto policies, with any potential London-Washington agreement likely to include measures addressing stablecoins.
Additionally, bilateral relations have strengthened following a memorandum of understanding (MOU) signed by President Donald Trump and UK Prime Minister Keir Starmer during Trump’s state visit to London.
The MOU sets out plans for joint development in artificial intelligence, nuclear energy, telecommunications, and quantum computing, with potential applications across space exploration, defense, and advanced medical technologies.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.