In the last fiscal year, 87% of crypto businesses that filed for money laundering licenses were denied by the U.K.'s financial authority.

The Financial Conduct Authority (FCA) said in its annual report that just four of 35 applications qualified in the year ending March 31. Binance's payments partner, BNXA, a PayPal U.K. business, and Nomura's crypto custody joint venture, Komainu, registered. The remainder were denied licenses or rejected for missing assessment components.

"Over 87% of crypto registrations were rejected, withdrawn or refused," FCA added. "We communicate our expectations and provide good and bad practice advise to businesses seeking authorization. This helps companies realize what is needed—44 crypto firms have money laundering registration."

The FCA has regulated the crypto industry and registered enterprises under its anti-money laundering laws since 2020. The regulator awaits legislation to license corporations to operate in the nation. It may take longer. Crypto preparations were halted by the July Labour administration.

The FCA has received 359 crypto company applications since January 2020, but just 44 are registered.

Last year, CoinDesk reported that several organizations that didn't get full FCA clearance said the registration procedure was arduous due to extended wait periods, a lack of feedback, and unjust treatment by the regulator. Some crypto firms have left the UK to register overseas and service U.K. consumers due to long delays.