13 MORE CRYPTO FIRMS WITHDRAW LICENSING APPLICATIONS IN THE UK

Last updated: June 19, 2025, 19:30 | Written by: Tyler Winklevoss

The United Kingdom's aspirations to become a global crypto hub are facing significant headwinds.In a striking development, 13 more crypto firms have reportedly withdrawn their licensing applications to the Financial Conduct Authority (FCA), signaling a growing disillusionment with the UK's regulatory environment. 13 more crypto firms withdraw licensing applications in the UK J Khareem Sudlow, OhNoCrypto crypto bitcoin Local and international crypto businesses in the United Kingdom seem unable to meet stringent demands set by financial crypto bitcoinThis latest wave of withdrawals brings the total number of firms abandoning their UK licensing efforts to a concerning figure, raising questions about the attractiveness and feasibility of operating a cryptocurrency business in the country. 🔵 NEW course: Understanding Blockchain and Bitcoin 👇 Subscribe to our channel here👇 so you do not miss our DAILY VIDEOS and prThe FCA's stringent approach to anti-money laundering (AML) compliance and its cautious stance on the overall crypto market appear to be key factors driving this exodus.

For crypto companies, navigating the complex and demanding regulatory landscape in the UK is proving to be a significant challenge.Many firms are finding the FCA's requirements too arduous, prompting them to seek more favorable regulatory frameworks in other jurisdictions. Local and international crypto businesses in the United Kingdom seem unable to meet stringent demands set by financial regulatorsThis trend raises concerns about the UK potentially missing out on the economic opportunities and innovation associated with the burgeoning crypto industry. cointelegraph.com: Local and international crypto businesses in the United Kingdom seem unable to meet stringent demands set by financial regulators.What exactly is driving these companies away, and what does it mean for the future of crypto in the UK? Earlier in June, the FCA issued a notice to U.K. consumers about 111 unregistered crypto companies in the country. Related: 51 crypto firms withdraw licensing applications in the UK. The raft of withdrawn applications comes amid increased regulatory scrutiny on crypto exchanges across several jurisdictions. The FCA itself has taken actionLet's delve deeper into the reasons behind this regulatory retreat and explore the implications for the UK's crypto ambitions.

The FCA's Stringent Regulatory Environment

The Financial Conduct Authority's (FCA) approach to regulating the crypto industry in the UK has been characterized by caution and a strong focus on protecting consumers and preventing financial crime.Back in January 2025, the FCA became the AML police for the UK's crypto market, marking the start of compulsory business registration for cryptocurrency firms in the country. The FCA s stricter stance on anti-money laundering (AML) regulations has made it particularly challenging for crypto firms to gain approval. Copper s withdrawal from the FCA s registration process underscores these hurdles and reflects a broader trend of crypto companies seeking more favorable regulatory environments abroad.This move signaled a significant shift towards stricter oversight and increased regulatory scrutiny.

The FCA's primary objective is to ensure that crypto firms operating in the UK adhere to robust anti-money laundering (AML) and counter-terrorism financing (CTF) controls. Earlier in June, the FCA issued a notice to U.K. consumers about 111 unregistered crypto companies in the country. Related: 51 crypto firms withdraw licensing applications in the UK. The raft ofThese controls are designed to prevent the use of crypto assets for illicit activities and to safeguard the integrity of the financial system. {{ menus.user.data_crypt.email }} {{item.text}} ndarje n aksioneHowever, the implementation of these regulations has proven to be a major hurdle for many crypto firms, particularly smaller companies with limited resources.

Challenges in Meeting FCA Requirements

The FCA's regulatory framework requires crypto firms to implement comprehensive AML/CTF programs, including:

Customer due diligence (CDD): Verifying the identity of customers and understanding the nature of their business.
Transaction monitoring: Detecting and reporting suspicious transactions.
Risk assessment: Identifying and mitigating the risks associated with money laundering and terrorist financing.
Reporting obligations: Filing reports with the FCA on suspicious activity and other relevant information.

Meeting these requirements can be costly and time-consuming, requiring significant investment in technology, personnel, and compliance expertise.Many crypto firms, especially those operating on a smaller scale, struggle to meet these demands, leading to delays in the licensing process or, ultimately, the withdrawal of their applications. 13 more crypto firms withdraw licensing applications in the UK PANews ｜ 5:49 Local and international crypto businesses in the United Kingdom seem unable to meet stringent demands set by financial regulators.It is important to note that the FCA has a duty to protect consumers and maintain the integrity of the financial system, and therefore, these regulations are necessary.

The Exodus of Crypto Firms: A Closer Look

The growing number of crypto firms withdrawing their licensing applications underscores the challenges and frustrations associated with the UK's regulatory regime. Strict Anti-Money Laundering laws in the United Kingdom appear to be constituting a major operational hurdle for crypto firms in the country. According to the U.K. Financial Conduct Authority (FCAAs of September 2025, nearly 90% of crypto license applicants had failed to meet the FCA's standards, either being rejected, refused, or withdrawing their applications. The United Kingdom Financial Conduct Authority s (FCA) crypto licensing regime is reportedly proving arduous for cryptocurrency businesses looking to operate in the country. According to a Reuters report on Tuesday, the number of withdrawn licensing applications from crypto businesses increased by over 25% in June. Indeed, Cointelegraph reported near the beginning of the month thatThis high failure rate highlights the difficulty of navigating the FCA's complex and demanding requirements. However, the UK is facing extreme competition from other global financial hubs that are attracting crypto asset firms. In particular, Trump s election as the President and his stance on crypto is drawing attention from all the major crypto firms across the globe. Additionally, Kuchinad believes that withdrawal of the application to get aCopper Technologies, a cryptocurrency custody firm backed by Barclays, recently withdrew its application, citing intensified scrutiny from the FCA.This further exemplifies the challenges even well-established firms face.

Why are so many firms choosing to withdraw their applications rather than persevere with the licensing process? Local and international crypto businesses in the United Kingdom seem unable to meet stringent demands set by financial regulators. The United Kingdom Financial Conduct Authority s (FCA) crypto licensing regime is reportedly proving arduous for cryptocurrency businesses looking to operate in the country.According to a Reuters report on Tuesday, the number of withdrawn licensing applicationsSeveral factors contribute to this trend:

High compliance costs: Implementing and maintaining robust AML/CTF controls can be expensive, particularly for smaller firms.
Lengthy application process: The FCA's licensing process can be lengthy and unpredictable, creating uncertainty for businesses.
Strict regulatory requirements: The FCA's stringent requirements can be difficult to meet, particularly for firms with limited resources or expertise.
Competition from other jurisdictions: Other countries offer more favorable regulatory environments for crypto businesses, making them more attractive destinations.

The withdrawal of these applications represents a loss for the UK's crypto industry, potentially hindering innovation and economic growth. Digital currency businesses looking to operate in the United Kingdom are reportedly finding the licensing terms set out by the Financial Conduct Authority (FCA) to be too challenging, amid the latest wave of withdrawn applications. Some 13 prospective licensees have reportedly withdrawn their applications to the regulator, taking the totalIt also raises questions about the UK's ability to compete with other countries that are actively seeking to attract crypto businesses.

Copper Technologies' Withdrawal: A Case Study

The decision by Copper Technologies, a prominent cryptocurrency custody firm, to withdraw its FCA license application is particularly noteworthy. Back in January 2025, the FCA became the AML police for the U.K. s crypto market marking the start of compulsory business registration for cryptocurrency firms in the country. Law BusinessCopper's withdrawal underscores the hurdles and complexities of the UK's regulatory landscape, even for well-established and well-funded firms.

Copper's rationale for withdrawing its application sheds light on the challenges faced by crypto businesses in the UK. Les entreprises de cryptographie locales et internationales au Royaume-Uni semblent incapables de r pondre aux exigences strictes fix es par les r gulateurs financiers.The company cited intensified scrutiny from the FCA as a key factor in its decision. The United Kingdom's Financial Conduct Authority says 64 crypto businesses have so far withdrawn their registration with the agency.This suggests that the FCA is subjecting crypto firms to a high level of scrutiny, demanding extensive documentation and rigorous compliance procedures.

By withdrawing its UK crypto license application, Copper aims to strengthen operations in global markets with more favorable regulatory frameworks. crypto markets; eth-bch vs btc; bitcoin price; ethereum price; cardano (ada) price; solana (sol) price; ripple (xrp) price; polkadot (dot) price; dogecoin (doge) price;This strategic move reflects a growing trend among crypto companies to seek out jurisdictions that offer a more welcoming and supportive environment.Copper's decision serves as a cautionary tale for the UK, highlighting the need to create a more balanced and competitive regulatory regime.

The Allure of Alternative Jurisdictions

Faced with the challenges of operating in the UK's regulatory environment, many crypto firms are looking to other jurisdictions that offer a more favorable regulatory climate. 13 more crypto firms withdraw licensing applications in the UKSeveral countries have emerged as attractive destinations for crypto businesses, including:

Switzerland: Known for its progressive regulatory framework and its welcoming attitude towards crypto innovation.
Singapore: A leading financial hub with a clear and supportive regulatory regime for crypto businesses.
Malta: An early adopter of crypto regulation, offering a comprehensive legal framework for crypto companies.
Dubai: Actively developing a crypto-friendly ecosystem, with plans to become a global hub for digital assets.

These jurisdictions offer a range of benefits, including:

Clear and predictable regulatory frameworks: Providing certainty and stability for businesses.
Supportive government policies: Encouraging innovation and investment in the crypto industry.
Access to talent and capital: Attracting skilled professionals and investors from around the world.
Lower compliance costs: Reducing the burden on businesses and making it easier to operate.

The competition from these alternative jurisdictions poses a significant challenge to the UK's ambitions to become a global crypto hub. The United Kingdom Financial Conduct Authority s (FCA) crypto licensing regime is reportedly proving arduous for cryptocurrency businesses looking to operateTo remain competitive, the UK needs to adapt its regulatory approach and create a more attractive environment for crypto businesses.

The Impact on the UK's Crypto Ambitions

The withdrawal of licensing applications by crypto firms has significant implications for the UK's ambitions to become a leading center for the crypto industry. More Topics Animals and Pets Anime Art Cars and Motor Vehicles Crafts and DIY Culture, Race, and Ethnicity Ethics and Philosophy Fashion Food and Drink History Hobbies Law Learning and Education Military Movies Music Place Podcasts and Streamers Politics Programming Reading, Writing, and Literature Religion and Spirituality Science TabletopThe exodus of these firms could lead to:

Reduced investment and innovation: Hindering the growth of the crypto sector in the UK.
Loss of jobs and economic opportunities: Limiting the potential for crypto to contribute to the UK's economy.
Damage to the UK's reputation: Signaling that the UK is not a welcoming destination for crypto businesses.
Brain drain: Skilled professionals leaving the UK to work in more crypto-friendly jurisdictions.

To mitigate these risks, the UK needs to take proactive steps to create a more attractive regulatory environment for crypto businesses.This includes:

Simplifying the licensing process: Reducing the burden on businesses and making it easier to obtain a license.
Providing clear and consistent guidance: Clarifying the FCA's expectations and providing support to businesses.
Adopting a more risk-based approach: Focusing on the highest-risk activities and tailoring regulations accordingly.
Collaborating with the industry: Engaging with crypto businesses to understand their needs and concerns.

By taking these steps, the UK can create a more competitive and supportive environment for the crypto industry, attracting investment, fostering innovation, and realizing the full potential of this transformative technology.

Addressing Common Concerns and Questions

The evolving regulatory landscape in the UK raises several important questions for crypto businesses and investors.Here are some of the most common concerns and questions, along with answers to provide clarity:

Why is the FCA taking such a strict approach to crypto regulation?

The FCA's primary mandate is to protect consumers and maintain the integrity of the financial system.Given the inherent risks associated with crypto assets, such as volatility, fraud, and money laundering, the FCA believes that a strict regulatory approach is necessary to mitigate these risks and ensure that consumers are adequately protected.

What are the main challenges for crypto firms seeking a license in the UK?

The main challenges include meeting the FCA's stringent AML/CTF requirements, complying with data protection regulations, and demonstrating adequate financial resources and operational controls. 13 more crypto firms withdraw licensing applications in the UK The United Kingdom Financial Conduct Authority s (FCA) crypto licensing regime is reportedly proving arduous for cryptocurrency businesses looking to operate in theThe licensing process can also be lengthy and expensive, requiring significant investment in compliance expertise and technology.

Are there any benefits to operating a crypto business in the UK despite the regulatory challenges?

Yes, the UK offers several advantages, including a well-established financial services industry, a highly skilled workforce, and a strong legal framework. 13 more crypto firms withdraw licensing applications in the UK The United Kingdom Financial Conduct Authority s (FCA) crypto licensing regime is reportedly proving arduous for cryptocurrencyThe UK also has a large and sophisticated investor base, which can provide access to capital for crypto businesses. Las empresas criptogr ficas locales e internacionales en el Reino Unido parecen incapaces de cumplir con las estrictas demandas establecidas por los reguladores financieros.Furthermore, obtaining a license from the FCA can enhance a firm's credibility and reputation, making it easier to attract customers and partners.

What can crypto firms do to improve their chances of obtaining a license in the UK?

To improve their chances of obtaining a license, crypto firms should:

Develop a robust AML/CTF program: Implementing comprehensive policies and procedures to prevent money laundering and terrorist financing.
Ensure compliance with data protection regulations: Protecting customer data and adhering to privacy laws.
Strengthen their operational controls: Establishing clear lines of responsibility and implementing effective risk management practices.
Engage with the FCA: Seeking guidance and clarification on regulatory requirements.
Seek expert advice: Consulting with legal and compliance professionals who specialize in crypto regulation.

What is the future of crypto regulation in the UK?

The future of crypto regulation in the UK remains uncertain. With the withdrawal of its UK crypto license application, Copper aims to strengthen operations in global markets with more favorable regulatory frameworks. The FCA s actions reflect its cautious stance on cryptocurrency regulation, approving only four of 35 applications in the past year.However, it is likely that the FCA will continue to take a cautious and pragmatic approach, balancing the need to protect consumers and prevent financial crime with the desire to foster innovation and economic growth. Local and international crypto businesses in the United Kingdom seem unable to meet stringent demands set by financial regulators.The UK may also need to adapt its regulatory approach to remain competitive with other jurisdictions that are actively seeking to attract crypto businesses.

The Rise of Unregistered Crypto Firms

Amidst the regulatory hurdles, the FCA has also been cracking down on unregistered crypto firms operating within the UK. 13 more crypto firms withdraw licensing applications in the UK. 13 more crypto firms withdraw licensing applications in the UK. 主頁深度快訊專題Earlier in June, the FCA issued a notice to UK consumers about 111 unregistered crypto companies in the country.This highlights a parallel issue: while some firms are withdrawing applications due to stringent requirements, others are attempting to operate without any regulatory oversight whatsoever.This poses a significant risk to consumers, as these unregistered firms are not subject to the same AML/CTF controls and consumer protection measures as licensed entities.

The FCA's actions against unregistered firms demonstrate its commitment to enforcing its regulatory framework and protecting consumers from potential harm. Copper s FCA license withdrawal comes soon after the FCA reported that nearly 90% of crypto license applicants failed to meet its standards as of September 2025.However, the large number of unregistered firms also suggests that there is a need for greater awareness and education among consumers about the risks of dealing with unregulated crypto businesses.

Conclusion: Reassessing the UK's Crypto Strategy

The withdrawal of 13 more crypto firms from the UK licensing process is a concerning development that underscores the challenges and complexities of the country's regulatory environment. 13 more crypto firms reportedly withdraw licensing applications in the UK CryptoUnityNews Crypto UKThe FCA's stringent approach to AML/CTF compliance and its cautious stance on the overall crypto market are proving to be major hurdles for many firms, prompting them to seek more favorable regulatory frameworks in other jurisdictions.

To remain competitive and realize its ambitions to become a global crypto hub, the UK needs to reassess its regulatory strategy and create a more balanced and supportive environment for crypto businesses.This includes simplifying the licensing process, providing clear and consistent guidance, adopting a more risk-based approach, and collaborating with the industry.

Key takeaways:

The FCA's strict regulatory requirements are deterring crypto firms from operating in the UK.
Alternative jurisdictions offer more favorable regulatory environments.
The UK risks losing investment, innovation, and economic opportunities.
A more balanced and supportive regulatory approach is needed.

The UK has the potential to be a leading center for the crypto industry, but it needs to act decisively to create a more attractive regulatory environment. Copper Technologies, a cryptocurrency custody firm backed by Barclays, has withdrawn its application for a UK crypto license, citing intensified scrutiny from the Financial Conduct Authority (FCA). The move comes as the FCA continues to enforce strict licensing rules, with over 87% of crypto applications being rejected, refused, or withdrawn inBy fostering innovation, attracting investment, and protecting consumers, the UK can unlock the full potential of this transformative technology and secure its place in the global crypto landscape.It's time for the UK to adapt and compete, or risk being left behind.