“The existing AML registration process with the FCA, which is much narrower, is already incredibly demanding, with the FCA rejecting or forcing the withdrawal of over 85% of applications,” he said in an emailed comment. The new framework introduces substantially broader requirements covering Consumer Duty, prudential standards, operational resilience and senior management accountability.

Cattee also cautioned firms against delaying applications, pointing to MiCA’s rollout in Europe, where many firms waited until deadlines approached, creating licensing bottlenecks that left some businesses without authorization in time.

For institutional investors, however, the new framework represents more significant than just another crypto…