Why has the FCA approved no new EMIs in the last seven months? A deep-dive into regulatory bottlenecks

The FCA’s halt on approving new electronic money institutions for seven months is a pivotal signal for UK fintech: stricter AML/financial-crime controls, tougher SM&CR governance requirements and regulatory capacity constraints are creating a bottleneck that raises the value of existing licences. Founders, investors and acquirers must urgently reassess market entry, M&A and compliance plans to navigate this reshaped payments landscape.

The FCA’s halt on approving new electronic money institutions for seven months is a pivotal signal for UK fintech: stricter AML/financial-crime controls, tougher SM&CR governance requirements and regulatory capacity constraints are creating a bottleneck that raises the value of existing licences. Founders, investors and acquirers must urgently reassess market entry, M&A and compliance plans to navigate this reshaped payments landscape.