The UK’s Financial Conduct Authority (FCA) has accelerated crypto application approvals, marking a shift toward a more favorable regulatory environment for digital assets. Since April 2025, the FCA has approved five new registrations — including industry giants BlackRock and Standard Chartered — while rejecting, refusing, or seeing the withdrawal of six applications, according to the Financial Times.
This marks a sharp rise in the acceptance rate, which has jumped to 45%, compared to less than 15% over the past five years when the regulator faced criticism for being too slow and restrictive. Since 2020, all firms looking to engage in crypto asset activities in the UK must register with the FCA, demonstrating compliance with anti–money laundering and counter-terrorist financing rules.
Why FCA’s Crypto Approval Pace is Rising
The faster approvals come ahead of a full regulatory framework for digital assets expected in 2026. UK regulators are under pressure to compete with the United States and the European Union (EU), which have adopted more flexible approaches to crypto oversight.
The FCA has already added 55 firms to its register but continues to take a cautious stance on risks. In comparison, U.S. and EU regulators have been quicker to greenlight crypto exchange-traded funds (ETFs) like Bitcoin and Ethereum, widening retail investor access.
To improve efficiency, the FCA has begun offering preapproval meetings and guidance sessions for applicants. Earlier this month, it launched a consultation proposing that crypto companies follow the same regulatory standards as traditional financial institutions, while allowing for adjustments tailored to the digital asset sector.
Application Trends in the UK
Despite the improved approval rate, the number of firms applying for FCA registration has declined. Applications fell from 46 in April 2023 to just 26 in April 2025. Approvals also dropped from eight in 2022–23 to only three in 2024–25, though momentum has picked up again in recent months.
Analysts suggest that many firms may be waiting until the UK’s full digital asset framework is in place before pursuing registration.
Crypto Growth in the U.S. and EU
While the UK refines its regulatory process, the U.S. and EU continue to push ahead with crypto adoption. In 2024, BlackRock won approval for spot Bitcoin and Ethereum ETFs, consolidating its leadership by offering products with high liquidity and strong institutional backing.
Charles Schwab is preparing to launch spot crypto trading services, having already introduced access to Bitcoin ETFs. Meanwhile, Robinhood expanded its footprint by launching U.S. stock and ETF tokens for EU investors and rolling out Crypto Staking services for Ethereum and Solana in the U.S.
