HM Treasury announced the 2023–24 Supervision Report on anti-money laundering (AML) and counter-terrorist financing (CTF), highlighting the Financial Conduct Authority’s (FCA) oversight of UK crypto firms since 2020. The announcement was made in a press release on March 13, 2025.
According to HM Treasury, the FCA has been acting as the UK’s AML/CTF supervisor for cryptoasset businesses since January 2020. It evaluates each applicant’s risk controls, including due diligence and transaction monitoring. In the fiscal year 2023–24, out of 275 total applications for AML/CTF supervision, 154 were approved, including six cryptoasset firms, while 120 were rejected, withdrawn, or refused. Most cryptoasset firms failed to meet required standards, with 86% of initial crypto registration attempts not progressing.
To assess money laundering and terrorist financing risk, the FCA conducts portfolio reviews combining internal intelligence, financial crime reports from firms, and external law enforcement data. In 2023–24, it found that retail banking, e-money, wholesale banking, wealth management, and cryptoasset sectors posed the highest financial crime risk. It classified about 3,000 firms as high risk, 8,950 as medium risk, and 5,100 as low risk. This shows a notable increase in firms assessed as low risk compared to previous years.
The Financial Conduct Authority is the United Kingdom’s primary financial regulatory body. Established in 2013 to oversee financial markets and protect consumers, it operates independently of the UK government. The FCA has the authority to regulate conduct related to financial products and services. In recent years, it has taken a conservative stance on digital assets by implementing stringent regulations that some critics argue hinder innovation in the sector.
HM Treasury is the UK government’s finance ministry responsible for overseeing public spending, economic policy, and financial regulation to support long-term growth. It manages the tax system and public sector pay while aiming to boost economic stability and regional competitiveness. With offices in London, Darlington, Edinburgh, and Norwich, it also focuses on responsible use of taxpayer money and improving access to financial services.
