Over the past 12 months, the UK Financial Conduct Authority (FCA) has rejected 87% of registration applications submitted by cryptocurrency companies due to insufficient anti-fraud measures.

According to the FCA’s 2024 annual report, more than 90% of crypto companies do not meet the established standards, and do not fully comply with investor protection requirements from fraud and anti-money laundering (AML) rules. The regulator specified that over the past year, out of 35 applications submitted, only four were approved, 15 applications were withdrawn by the companies themselves, and 9 were rejected.

“We rejected applications where key elements required to carry out due diligence were missing or the information provided was insufficient, rendering the applications invalid. The main reason for refusing registration was inadequate anti-money laundering measures in relation to cryptocurrencies,” the FCA said.

The agency added that in June 2023, it developed rules for promoting cryptocurrency services, requiring companies to publish a risk warning. Then, advertising digital assets in the UK will be honest and will not mislead investors. The regulator noted that the British public has become more aware of cryptocurrency scams: 63% of consumers reported being deceived before investing in a crypto project. This is 5% more than a year earlier.

According to recent data from law firm Reed Smith, the number of applications for registration submitted to the FCA by crypto exchanges has fallen by 51% over the past three years. Experts noted that the agency is too slow in considering applications from crypto companies.