The UK’s Financial Conduct Authority has been getting an earful from crypto companies for years about how slow they are with approvals. Looks like they finally listened because they’ve cut their review times by two-thirds and started saying yes way more often.
Since April, the FCA has approved five new firms, including some big names like BlackRock and Standard Chartered. That might not sound like much, but it’s actually a huge improvement when you consider they rejected almost everything that came across their desk for the past five years.
The approval rate jumped from under 15% to 45%, which is still pretty tough, but at least companies have a fighting chance now. What used to take 17 months to get through the system now takes just over five months on average. That’s still longer than most businesses would like, but it’s progress.
Here’s the weird thing though-even with faster approvals, fewer crypto companies are actually applying to do business in the UK. Applications dropped from 46 in 2023 to just 26 this past year. That could mean companies are waiting to see what the new regulatory framework looks like before they jump in.
The FCA is planning to roll out comprehensive crypto rules in 2026, so maybe firms figure it’s smarter to wait and see what those look like rather than navigating the current system. Can’t really blame them for wanting clarity before they invest time and money in the approval process.
Conclusion
The FCA’s faster approvals mark progress, but falling applications show firms remain cautious. Until the 2026 rules provide clarity, many may sit on the sidelines, waiting for a more predictable regulatory environment before committing fully.
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