Regulatory authorities in the United Kingdom are moving to shed their reputation for slow crypto oversight, now welcoming firms with a faster, clearer registration process.
Summary
- The UK’s FCA has accelerated its crypto registration process, making approvals faster and more accessible.
- Approval rates have increased significantly, with major firms like BlackRock and Standard Chartered said to have successfully gained approval under the updated process.
- The FCA is also consulting on a full regulatory framework that would bring crypto firms under bank-level rules.
- UK officials are pursuing closer ties with U.S. regulators to support stablecoin oversight and enable smoother access to international capital markets.
The UK’s Financial Conduct Authority (FCA) is accelerating its registration process for crypto companies after industry criticism that approvals were dragging on for more than a year. According to a Sept. 22 Financial Times report, applications that once averaged 17 months are now typically handled in just over five months.
Approval rates have also significantly jumped since April, reaching around 45% compared with less than 15% over the previous five years. The regulatory body has also increased staffing, introduced pre-application meetings, and offered clearer guidance to streamline reviews.
While the total number of applications has declined over the years due to past delays, recent months have seen a rebound in successful registrations, with major firms such as BlackRock and Standard Chartered reportedly receiving approval to operate in the country.
The agency has also expanded its outreach to applicants, offering pre-approval meetings and hosting roundtables and webinars to clarify requirements. FCA executive director for payments and digital finance David Geale reportedly stated that these efforts have improved the quality of applications and helped speed authorizations, all without lowering the commission’s standards.
UK lays groundwork for full crypto regulation and U.S. alignment
The FCA’s recent acceleration in approvals is part of a broader effort to embrace the crypto industry and strengthen the UK’s position in the global market. The agency recently opened a consultation to bring crypto-asset businesses under full regulatory oversight by 2026, aimed at enhancing supervision and establishing a clear operational framework.
Under the proposal, crypto firms would be subject to the Senior Managers and Certification Regime, operational-resilience standards, and stringent financial-crime prevention rules long applied to banks and brokerages. This aims to to ensure that service providers operate safely and fairly, while making them accountable to customers and offering clearer ways to resolve regulatory disputes.
This builds on the draft legislation introduced by HM Treasury earlier this year, which would give the FCA authority over trading platforms, custody services, and staking operations.
Alongside domestic reforms, the United Kingdom is also working to deepen regulatory coordination with the United States. Recent high-level talks between UK Chancellor Rachel Reeves and U.S. Treasury Secretary Scott Bessent are reportedly exploring shared oversight of stablecoins, joint regulatory sandboxes, and measures to give UK crypto firms smoother access to U.S. capital markets.
The ongoing efforts highlight the FCA’s broader strategy to strengthen the local UK crypto market and ensure London remains a leading global hub for the industry.
