FCA Crypto Registration Rate Rose to 56% in Recent Period
Recent FCA data show 56% of crypto registration determinations ended in registration, but longer-term figures indicate most applications are withdrawn. The regulatory landscape changes with a new authorization regime from September 2026. Firms and traders should note the implications for market access and oversight.
The UK Financial Conduct Authority (FCA) has published data showing that 263 of 391 crypto registration cases completed since January 2020 ended in withdrawal, representing 67% of all determinations. In contrast, only 17% ended in registration and 4% in formal refusal. However, the latest 12-month figures paint a different picture: registrations accounted for 13 of 23 determinations, or 56%, while withdrawals fell to 35% of decisions.
The headline improvement may be misleading. The recent sample is small—only 23 decisions—making it difficult to draw robust conclusions about whether standards have changed. The FCA's guidance clarifies that withdrawal is a distinct outcome: firms may withdraw when they need more time to address gaps, cannot demonstrate compliance, or believe refusal is likely. Formal refusals capture only the final stage, so the combined rates of withdrawal and refusal better reflect attrition. Over the full period since 2020, only 68 of 391 cases (17%) achieved registration, suggesting that many applicants fail to meet the regulator's expectations.
A more significant shift is upcoming. From September 30, 2026, crypto firms will be able to apply for authorization under the Financial Services and Markets Act, replacing the current Money Laundering Regulations registration. The new regime extends beyond anti-money laundering to include governance, operational resilience, prudential requirements, and Consumer Duty. Existing registrations will not convert automatically, and late applicants may face restrictions on new UK business while their cases are pending. This makes historical registration rates a weak predictor of future outcomes, as the applicant pool, legal standards, and transitional protections will differ.
For retail traders, this regulatory evolution signals heightened oversight of crypto firms, which could enhance consumer protections but also create compliance burdens that may affect service availability. The high historical withdrawal rate underscores the importance of verifying a firm's regulatory status and understanding the limitations of current registrations. As the FCA tightens its framework, traders should stay informed about which firms meet the new standards.
This is information, not investment advice.
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