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The Financial Conduct Authority (FCA) has released new data indicating a significant decrease in cryptoasset registration applications. The agency reported receiving only one application last month, a stark contrast to the 32 applications over the previous 12 months and 365 since January 2020.
According to the FCA, this decline may reflect the challenges faced by crypto businesses in meeting its anti-money laundering (AML) requirements. Since the introduction of these regulations, 38 firms have been successfully registered, while 273 applications have been refused or withdrawn, and 54 remain pending. Some industry leaders have expressed concerns that these practices could discourage legitimate businesses from operating in the UK.
Vlad Tenev, CEO of Robinhood, commented on this regulatory stance in a recent interview with The Times. "The gambling will continue, but suddenly, with crypto and margin trading, we would have a problem with that. That just seems backwards to me," said Tenev.
