The Financial Conduct Authority: 87% of crypto companies fail to meet registration requirements!
Registration results: 87% of companies fail to comply
The authority revealed in its report that 87% of registration applications for crypto companies were either rejected, withdrawn or denied.
The authority explained that it is working to guide companies seeking licenses by providing the necessary guidance on good and bad practices.
It added that 44 companies operating in the cryptocurrency sector have obtained approved registration.
Tightening regulations:
In addition, the report highlighted the implementation of stricter marketing regulations on the promotion of cryptocurrencies, which came into effect in 2024.
These regulations include a 24-hour cooling-off period for investors, and the classification of crypto assets within restricted collective market investments.
These measures aim to ensure that promotional offers for crypto assets are clear, fair and not misleading, which requires companies to adhere to strict standards that protect investors from high risks.
The report indicated that the authority issued 450 warnings against companies that illegally promote crypto assets during the first three months of implementing these new rules.