Cryptoasset approvals surge as FCA softens stance
The approval rate for cryptoasset firm registrations has surged, City PM can reveal, in signs the UK’s financial watchdog is softening its stance towards the crypto industry.
As many as 13 cryptoasset firm registrations were approved by the Financial Conduct Authority (FCA) in the year to April 2026, a more than doubling compared to 2024, according to data obtained via freedom of information request.
By contrast, the total number of rejections fell from as many as nine in 2025 to just one in 2026. However, the total number of applications also fell, from 27 to 22, in signs the earlier higher rejection rate may have deterred subsequent applicants.
Clearing the FCA’s approval process is essential for firms providing most kinds of crypto services, such as operating a crypto exchange, issuing new cryptoassets or operating customer wallets.
Brett Hillis, Partner and cryptocurrency expert at international law firm Reed Smith, who obtained the data, told City PM the increased success rate combined with the lower application numbers could also be an indication of “self-selection” among crypto businesses.
“Firms increasingly understand what the FCA will and won’t tolerate, meaning some applicants are less likely to apply in the first place,” Brett said.
“This is mutually beneficial. Not only does it make the FCA’s life easier, but it also means the UK is attracting the best the crypto world has to offer.”
The data also found a slight decline in the average length of time required to approve applications, from 311 in 2024 to 295 in 2026.
“The modest reductions in approval times are a big win for UK plc,” Hillis said.
“Even if the overall drop is comparatively small, what matters is that the UK is headed in the right direction.
“After all, the sentiment on the ground had been clear for some time, namely that cryptos are prepared to wait to enter UK markets, but they aren’t prepared to wait forever. Delay strikes at the heart of competitiveness.”
E-money licence applications head in wrong direction
The improving approval rate comes in stark contrast to the number of successful applicants for e-money licences, which has plummeted in the last few years.
Fresh figures – revealed in a Freedom of Information request by financial regulation consultancy Pathlight Associates – showed just 35 applicants were able to bag an electric money institution (EMI) licence in 2025.
The figure is down 80 per cent from the 171 approved by the Financial Conduct Authority (FCA) in 2020.
The permit grants non-bank companies the permission to issue digital cash, manage electronic wallets, and provide payment services under regulatory supervision.