The vast majority of crypto firms that attempt to register with the UK financial regulator are denied, up to 85-90% according to the Financial Conduct Authority (FCA) . Both Wirex and B2C2 withdrew their bids to get registered when the requirements got strengthened once more. A  study released this week by the FCA  shows that the vast majority of cryptocurrency companies that have applied to register have been rejected. According to the FCA, 41 businesses, or 15% of applicants, are currently included in the crypto asset company registration.

What is applicable to crypto asset enterprises is not well explained, probably because the FCA is wary of the emerging technology. The UK established a requirement earlier this year that any crypto firm wishing to do business there must register with the FCA by April 2022.

Only 27 of the more than 100 enterprises under consideration had received approval as of March. By March 15 of that year, 58 businesses had withdrawn or been rejected, according to the regulator, and a "small percentage" of those businesses had been discovered to be allegedly engaged in illegal activity.

Companies hoping to operate in the UK have expressed frustration with the current system, which some leaders say puts too much emphasis on scrutinizing individual firms versus creating a set of standards.

In order for the UK to succeed as a leader in cryptocurrencies, Katharine Wooller, business unit director at digital asset security company Coincover, cited former chancellor Philip Hammond's statement that the UK must take calculated risk.

"We need to stop rating companies and start collaborating with them to establish a regulatory framework if we want to advance as a worldwide leader in digital assets," said the author.