The Financial Conduct Authority (FCA) has significantly increased its approval rate for cryptoasset firm registrations, with 13 firms receiving the green light in the year leading up to April 2026. This figure represents more than double the number of approvals granted in 2024, according to a report by City AM. The surge in registrations could signal a notable change in the UK's financial watchdog's approach to regulating the rapidly evolving crypto industry, which has historically faced a cautious and stringent regulatory environment.
For several years, the FCA has maintained a robust and often critical stance on cryptoassets, citing concerns over consumer protection, market volatility, and potential financial crime risks. Its previous approval rates for new crypto firms were notably low, reflecting a cautious gatekeeping approach aimed at safeguarding the UK's financial stability and retail investors. This latest data suggests a potential recalibration of that strategy, possibly in response to growing industry pressure, technological advancements, or a broader global trend towards integrating digital assets into mainstream finance.
The increase in approved registrations could pave the way for more crypto businesses to operate legally and openly within the UK, potentially fostering innovation and competition in the sector. Firms seeking FCA approval must demonstrate adherence to strict anti-money laundering (AML) and counter-terrorist financing (CTF) regulations, alongside robust governance and operational standards. The fact that more firms are now meeting these demanding criteria, or that the FCA's assessment framework has adapted, points to a maturing industry and a potentially more pragmatic regulatory outlook.
While the FCA has not issued a formal statement explaining the increase, industry commentators suggest it could be part of a broader government ambition to establish the UK as a global hub for crypto and blockchain technology. The Treasury has previously indicated a desire to create a competitive and innovation-friendly environment for digital assets, balanced with strong regulatory oversight. This shift could be seen as an incremental step towards achieving that objective, providing greater clarity and legitimacy for companies operating in the crypto space.
The implications for consumers could include a wider range of regulated crypto services and products, potentially with enhanced safeguards and clearer accountability mechanisms. However, the inherent risks associated with cryptoassets, such as price volatility and the potential for scams, are likely to remain a key focus for the regulator, even as it appears to adopt a more accommodating stance towards firm registrations.
This development is likely to be welcomed by the crypto industry, which has long advocated for a clearer and more supportive regulatory framework in the UK. Opposition parties and consumer groups, however, may scrutinise the FCA's evolving approach to ensure that consumer protection remains paramount amidst the drive for innovation and market growth.
Source: City AM