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UK Regulator Accelerates Crypto Approvals to Catch Up With EU, US

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Key Takeaways

  • FCA approval rate jumps to 45%, with BlackRock and Standard Chartered among recent registrants.
  • Preapproval meetings and guidance are making registrations faster and smoother.
  • Applications have declined as firms await the full 2026 framework, while U.S. and EU adoption moves ahead.

UK’s financial regulatory body, the Financial Conduct Authority (“FCA”), recently accelerated cryptocurrency application approvals in an attempt to develop a more favorable regulatory environment for digital assets.

Since April 2025, FCA has approved the registration of five firms, including BlackRock (BLK - Free Report) and Standard Chartered (SCBFF - Free Report) , while six applications were either rejected, refused or withdrawn. This was first reported by the Financial Times.
 
The current acceptance rate has jumped to 45%. This is a significant increase from under 15% over the past five years, during which the regulator was criticized for being slow and approving too few applications.

Since 2020, any firm aiming to conduct crypto asset activities in the UK has been required to register with the FCA, demonstrating compliance with rules designed to prevent financial crime, including money laundering and terrorist financing.

Why FCA’s Crypto Approval is Speeding Up

The faster approvals come as the FCA gears up to introduce a full regulatory framework for digital assets in 2026. London regulators have been under pressure to foster a more welcoming environment, as the U.S. and European Union (EU) move ahead with more accommodating policies.

While the FCA has added 55 firms to its register, it continues to take a cautious approach to market risks. In contrast, regulators in the United States and the European Union (EU) have been quicker to approve products like Bitcoin and other digital asset exchange-traded funds (ETFs), allowing retail investors greater access.

To streamline the registration process, the FCA has started offering preapproval meetings and guidance sessions for crypto firms. Earlier this month, it also launched a consultation proposing that crypto companies adhere to the same regulatory standards as traditional financial institutions, while considering adjustments to account for the sector’s unique characteristics.

Despite the improved acceptance rate in recent years, the number of crypto firms seeking to enter the UK market has declined. Applications fell from 46 in April 2023 to just 26 in April 2025, and approvals dropped from eight in 2022 23 to only three in 2024 25, though the pace has picked up again in recent months.

The UK’s plans for a full regulatory framework may have prompted some companies to delay FCA registration until the broader rules are implemented.

Crypto Ventures in the U.S. & EU

In the U.S. market, regulators have been endorsing crypto adoption, leading to business ventures by many firms, including BlackRock, Charles Schwab (SCHW - Free Report) and Robinhood Markets, Inc. (HOOD - Free Report) .
 
In 2024, BlackRock obtained approval for spot Bitcoin and Ethereum ETFs. BlackRock cemented its lead in Bitcoin and Ethereum ETFs by targeting high-demand, low-risk products backed by deep liquidity, mature derivatives and strong institutional interest.
 
Similarly, Schwab also plans to launch spot cryptocurrency trading services by next year. Schwab already allows its clients to trade spot Bitcoin ETFs after they started trading last year.
 
In June, Robinhood introduced U.S. stock and ETF tokens for EU investors, enabling eligible HOOD clients to gain exposure to U.S. equities with zero commissions. Further, Robinhood launched Crypto Staking for eligible U.S. investors, beginning with Ethereum and Solana.

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