The UK's ambition to become a cryptocurrency hub has been thwarted by regulatory hurdles

Cryptocurrency companies have withdrawn their applications due to the cumbersome and time-consuming regulatory process of the UK's Financial Conduct Authority (FCA). Reflecting dissatisfaction with the UK regulatory environment, 186 companies have withdrawn their applications to register in the UK over the past three years. According to Reed Smith, from May 2023 to April 2024, the FCA received only 29 applications for registration, a significant drop from the figures of the previous two years. Quarter 1 saw just seven applications this year, the lowest number in three years.
The FCA's crypto registration applications take an average of 459 days to be approved, with some companies waiting more than two years for a decision. This slow approval process has prompted many crypto companies to seek more efficient foreign regulatory environments. While the FCA stresses the importance of market integrity and consumer protection, frustration within the industry continues to grow, threatening the UK's ambitions to become a global hub for digital assets.