Withdrawn crypto applications decreased by 78% in the past year, reflecting compliance with FCA rules.
UK crypto regulation faces challenges with fewer applications and lengthy approval times.
Applications for registration as a crypto-asset exchange or
custodian wallet provider have dropped by 51% over the past three years,
according to data obtained through a Freedom of Information (FOI) request by
global law firm Reed Smith.
The Financial Conduct Authority (FCA) reported that only 29
applications were submitted between May 1, 2023, and April 30, 2024. This marks
a decline from 42 applications in the previous year and 59 in the year before
that. The first quarter of 2024 saw just seven applications, which is the
second-lowest quarterly figure recorded in the past three years.
Regulatory Process Slows Progress
Brett Hillis, Partner at Reed Smith, Source: LinkedIn
The average time for the approval of applications within the
past three years stands at 459 days. Industry experts have raised concerns that
this slow pace may hinder the UK’s broader goal of becoming a global hub for
cryptocurrency. The lengthy approval process could discourage potential
applicants and undermine confidence in the regulatory framework.
In the last three years, 186 firms have withdrawn their
applications. However, the number of withdrawals has dropped significantly,
falling by 78% in the past year compared to the 2021–2022 period. This decrease
suggests that applicants may be gaining a better understanding of the FCA’s
requirements and expectations, resulting in fewer withdrawals.
Withdrawals and Applications Data
The data provided by the FCA highlights several key trends.
Over the last year, 29 applications were submitted, compared to 42 in 2022–2023
and 59 in 2021–2022. In the same period, 20 firms withdrew their applications
for registration, down from 73 in 2022–2023 and 93 in 2021–2022.
“The good news is that the falling number of applications
suggests that firms are now much better acquainted with what the regulator
expects,” Brett Hillis, Partner at Reed Smith, said.
“This can only be a positive development and would also
explain the fall in approval times as the FCA has to spend less time wading
through poor quality applications. Clearly, though, there is scope to speed up
further.”
The average
time taken to approve applications in the last year was 311 days, an
improvement from 497 days in the previous year. Since 2021, the FCA has spent
the equivalent of 25 years assessing cryptoasset applications.
Since new financial promotion rules came into effect in
October 2023, the FCA identified 1,010 breaches in the first seven months, up
to April 2024. The introduction of these rules has led to increased scrutiny
and enforcement activity in the sector.
Applications for registration as a crypto-asset exchange or
custodian wallet provider have dropped by 51% over the past three years,
according to data obtained through a Freedom of Information (FOI) request by
global law firm Reed Smith.
The Financial Conduct Authority (FCA) reported that only 29
applications were submitted between May 1, 2023, and April 30, 2024. This marks
a decline from 42 applications in the previous year and 59 in the year before
that. The first quarter of 2024 saw just seven applications, which is the
second-lowest quarterly figure recorded in the past three years.
Regulatory Process Slows Progress
Brett Hillis, Partner at Reed Smith, Source: LinkedIn
The average time for the approval of applications within the
past three years stands at 459 days. Industry experts have raised concerns that
this slow pace may hinder the UK’s broader goal of becoming a global hub for
cryptocurrency. The lengthy approval process could discourage potential
applicants and undermine confidence in the regulatory framework.
In the last three years, 186 firms have withdrawn their
applications. However, the number of withdrawals has dropped significantly,
falling by 78% in the past year compared to the 2021–2022 period. This decrease
suggests that applicants may be gaining a better understanding of the FCA’s
requirements and expectations, resulting in fewer withdrawals.
Withdrawals and Applications Data
The data provided by the FCA highlights several key trends.
Over the last year, 29 applications were submitted, compared to 42 in 2022–2023
and 59 in 2021–2022. In the same period, 20 firms withdrew their applications
for registration, down from 73 in 2022–2023 and 93 in 2021–2022.
“The good news is that the falling number of applications
suggests that firms are now much better acquainted with what the regulator
expects,” Brett Hillis, Partner at Reed Smith, said.
“This can only be a positive development and would also
explain the fall in approval times as the FCA has to spend less time wading
through poor quality applications. Clearly, though, there is scope to speed up
further.”
The average
time taken to approve applications in the last year was 311 days, an
improvement from 497 days in the previous year. Since 2021, the FCA has spent
the equivalent of 25 years assessing cryptoasset applications.
Since new financial promotion rules came into effect in
October 2023, the FCA identified 1,010 breaches in the first seven months, up
to April 2024. The introduction of these rules has led to increased scrutiny
and enforcement activity in the sector.
Coinbase Enters Prediction Markets as the Amazonification of Financial Platforms Gathers Pace
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
