A small portion of cryptocurrency firms successfully obtained licensing under the UK’s anti-money laundering regulations in the past fiscal year.

What Happened: The UK’s Financial Conduct Authority (FCA) disclosed in its annual report that out of 35 applications it received in the 12 months ending March 31, only four companies managed to secure approval.

“Over 87% of crypto registrations were rejected, withdrawn or refused,” the FCA stated.

This high rejection rate is part of a broader trend since the FCA began overseeing crypto sector registrations in January 2020.

Out of 359 total applications received since then, only 44 companies have successfully registered, reflecting the stringent standards applied by the regulator.

Why It Matters: The FCA focuses on registering firms under anti-money laundering rules. It awaits legislation that would grant it full authorization powers over crypto companies operating in the country.

However, this expanded authority may be delayed following the new Labour government’s decision to pause crypto plans.

The registration process has not been without controversy. As reported by CoinDesk last year, some rejected applicants have reported long wait times, lack of feedback, and what they perceive as unfair treatment by the regulator.

The FCA maintains that it communicates its expectations and issues guidance “on good and poor practice” so that firms understand what is required.

Binance‘s payments partner BNXA, a PayPal UK unit, and Komainu, a crypto custody joint venture involving Nomura, were among the successful few applicants.

The upcoming Benzinga Future of Digital Assets event on Nov. 19 is set to address these critical issues, bringing together industry leaders, regulators, and innovators to discuss the future of cryptocurrency regulation and explore potential pathways for balancing innovation with compliance in the rapidly changing landscape of digital assets.

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