The Financial Conduct Authority hasn't licensed any crypto firms in six months, stalling the industry's hopes of making the UK a crypto haven.

In 2022, now-defenestrated Prime Minister Rishi Sunak planned to make Britain a “global cryptoasset technology hub.”

That promise feels far.

According to its record, the Financial Conduct Authority last registered institutional market-maker Portofino Technologies in February.

According to August 1 registry statistics, the FCA received 34 applications in the last year, four of which were approved.

The other organizations permitted were crypto bank Banxa UK, PayPal, and custodian Koimanu.

Before approval or denial, 16 of the 34 withdrew.

Firms offering crypto trading or wallets must register with the FCA.

Lobbyists say the FCA's consumer marketing guidelines are rigid, onerous, and unclear.

Binance and PayPal halted UK crypto services due to marketing regulations.

This month, the FCA released a report on how effectively crypto businesses followed these October guidelines.

“This is the first conduct regulation many UK cryptoasset firms have needed to comply with, and they have had to invest in significant technical developments,” the paper added.

The FCA claims that most crypto companies fail its anti-money laundering criteria, hence its low registration rate.

We expect companies to be fit and proper and have necessary measures to detect and prevent crime-related money flows,” an FCA spokesperson told DL News.

The regulator's requirements “are essential to protecting people and the integrity of our financial system,” the spokeswoman added, reflecting its consumer protection objective.

Crypto investment losses aren't eligible for government reimbursement like bank deposits.