FCA Crypto Registration Rate Rises, But Numbers Still Low Amid Regulatory Shift

The UK Financial Conduct Authority (FCA) has reported that its crypto registration rate rose to 56% for recent decisions, but this figure is misleading due to a change in the denominator.

The FCA's data shows that out of 23 determinations made recently, 13 resulted in registrations. However, when looking at the broader dataset since January 2020, only 68 of 391 cases ended in registration, which equates to just 17%.

This discrepancy is largely due to the fact that the FCA's withdrawal rate fell to 35% in recent decisions, compared to 67% for withdrawals through August 1, 2026. The FCA guidance states that firms may withdraw their applications when they need more time to address gaps or cannot meet the required standards.

The UK is set to change its regulatory test for crypto firms, with a new gateway replacing the old one from September 30, 2026. Existing registrations under the Money Laundering Regulations will not convert automatically, and firms must apply again under the new assessment.