TechFlow news, according to Cointelegraph, CryptoUK, the UK's self-regulatory body for the cryptocurrency industry, said that stringent regulations by the Financial Conduct Authority (FCA) are hindering the development of the cryptocurrency sector.
Since January 2020, companies conducting crypto-asset business in the UK have been required to register with the FCA. However, the registration process has proven lengthy and difficult, creating a barrier for many businesses. Over the past 12 months, the FCA approved only 4 out of 35 applications, meaning around 87% of crypto registration applications failed. Between May 2023 and April 2024, the FCA received 29 applications, compared to 42 during the previous 12-month period and 59 the year before.
International law firm Reed Harris revealed that the FCA takes an average of 459 days to process a registration application—equivalent to the time needed for a full banking license. Industry insiders fear that strict regulation could cause the UK to lose competitiveness to jurisdictions with more crypto-friendly environments.
