FCA Report: 87% of Crypto Firms Fail to Meet UK Licensing Standards Under New Regulations
The Financial Conduct Authority (FCA), the UK’s primary financial regulator, has released its annual report for the 2023-2024 fiscal year, showcasing significant progress in regulating digital assets.
The report outlines the introduction of new legislation aimed at protecting investors and combating financial crimes related to cryptocurrencies.
One key finding from the report reveals that 87% of cryptocurrency companies’ applications for licenses either failed to meet the required standards or were withdrawn by the companies themselves.
The FCA emphasized the need for clear guidance to help businesses comply with regulatory requirements. So far, only 44 companies have successfully registered under the FCA’s framework.
It is worth noting that in 2024, the FCA implemented stricter marketing regulations for digital asset products. These include a mandatory 24-hour cooling-off period for investors before making final investment decisions. Additionally, digital assets are now classified as restricted mass-market investments to ensure greater investor protection.
The new measures are designed to ensure that promotional offers for digital assets are transparent and fair, while safeguarding investors from associated risks. As a matter of fact, in the first three months of enforcing these rules, the FCA issued 450 warnings to companies failing to comply with the updated regulations.
