ChainCatcher reported that according to Protos, the UK Financial Conduct Authority (FCA) has spent a cumulative 25 years processing crypto applications, according to a Freedom of Information (FOI) request. The Financial Times reported that the FOI submitted by law firm Reed Smith showed that the average time for the FCA to evaluate crypto applications was 459 days.
From May 2023 to April 2024, the number of applications filed dropped to 29, a sharp drop from the 42 and 59 in the previous two years. Only seven applications were filed in the first quarter of 2024.
The report shows that the number of crypto companies registered with the FCA has fallen by 51% in the past three years, with a total of 186 companies withdrawing their applications to the financial regulator. This has raised concerns about whether the long approval time has forced crypto asset companies to seek other markets.
Brett Hillis, partner at Reed Smith, said: “If the fall in applications is because crypto firms have given up waiting and are starting to look abroad, this should send a clear warning about London’s competitiveness.”
