FCA Speeding Up Crypto Registrations, but Firms May Be Holding Off Amid Regulatory Uncertainty

• FCA approval times dropped from 511 to 158 days (69% faster)

• Applications fell from 46 to 26 in three years; approval rate slid from 17.4% to 11.5%

• Withdrawals dropped from 70 to 15, indicating improved regulator resourcing and fewer abandoned processes

FCA crypto registration: approvals are 69% faster but applications fell 43.5% in two years. Read how timeline improvements affect UK crypto firms and what to do next.

What is the FCA crypto registration trend?

FCA crypto registration approvals have become much faster: average processing time fell from 511 days in 2022/23 to 158 days in 2024/25. At the same time, the total applications received dropped by 43.5% over two years, reflecting firms pausing amid regulatory change and perceived timeline risk.

Why are fewer firms applying for FCA registration?

Firms cite two main reasons: uncertainty over upcoming UK legislation and the prospect of needing full FCA authorisation later. Reed Smith (law firm) noted that some businesses may pause to avoid undergoing two separate FCA processes. SMEs, in particular, report the process still feels cumbersome despite improvements.

How has the FCA sped up registration processing?

The FCA reduced average approval times by investing in internal knowledge and resources and by adjusting priorities after an exodus of firms in prior years. The result: faster reviews, fewer withdrawals, and a move toward setting minimum standards for crypto firms.

How can firms respond to the changing FCA landscape?

1. Review current registration status and document gaps to speed any re-submission.
2. Monitor UK legislative proposals and FCA consultations to align compliance and avoid duplicate applications.
3. Engage with industry groups such as CryptoUK and trade councils for guidance and advocacy.

Frequently Asked Questions

How long does FCA crypto registration take now?

As of 2024/25, the FCA’s average approval time is 158 days, down from 511 days in 2022/23, reflecting faster internal processing and clearer resourcing.

Should small crypto firms apply now or wait for new UK rules?

Many SMEs are pausing to assess upcoming legislation. Firms should weigh the benefit of early registration against potential future authorisation requirements and seek legal advice as needed.

Key Takeaways

• Processing speed improved: Average approval time cut by 69% to 158 days.
• Fewer applicants: Total applications fell 43.5% in two years; approval rate dropped to 11.5% in 24/25.
• Strategic pause: Firms may delay applying to avoid duplicate processes when new UK legislation and full authorisation rules arrive.

Conclusion

The FCA has demonstrably accelerated crypto registration processing, reducing average approval times and cutting withdrawal rates, yet the UK market is seeing fewer applications overall. FCA crypto registration improvements increase confidence, but pending legislation and the prospect of full authorisation mean many firms are pausing. Firms should prepare now by closing compliance gaps and monitoring regulator consultations to avoid future rework.

Published by COINOTAG on 2025-09-22. Last updated 2025-09-22.