FCA crypto approvals more than double to 13 firms in year to April 2025

The Financial Conduct Authority approved 13 cryptoasset firm registrations in the year to April 2025, more than doubling the number granted in 2024, according to data obtained by City AM. The surge in approvals signals a notable shift in the UK regulator's approach to the digital asset sector after years of stringent gatekeeping that saw the vast majority of applications rejected or withdrawn.

The approval rate increase comes as the FCA appears to be recalibrating its regulatory posture toward crypto businesses seeking to operate legally in Britain. For investors, this softening stance could translate into a more mature and regulated crypto market infrastructure in the UK, potentially attracting institutional capital that has remained on the sidelines due to regulatory uncertainty. The doubling of approved registrations suggests the regulator may be finding a middle ground between consumer protection and fostering innovation in digital assets.

Market participants should monitor whether this trend continues through 2025 and into 2026, as a sustained increase in FCA-approved crypto firms could position London as a more competitive hub for digital asset businesses compared to other European financial centres. The regulatory thaw may also encourage venture capital deployment into UK-based crypto startups that can now more realistically plan for regulatory compliance pathways.