• The number of companies who are ditching operations in the country have increased by 25%.
• Earlier this month, the FCA had launched a notice to the consumers about 111 unregistered crypto firms and called their operations very risky.
• The FCA has been forced to extend the deadline of temporary registrations regime’s for another 9 months to March, 2022.
The regulators of the United Kingdom have imposed strict rules at cryptocurrency businesses operating there. As a result of which, local and international crypto businesses are finding it hard to cooperate with their policies with the United Kingdom Financial Conduct Authority’s. As per Reuters, several businesses are withdrawing from the country. Binance, one of the largest cryptocurrency exchanges, has received warning from regulators to halt their operations in the U.K. The FCA announced that the exchange cannot perform any regulated activities and also warned it’s consumers which has been put under growing scrutiny globally.
13 More Crypto Firms Have Withdrawn From UK’s Registration Regime
The FCA has certainly strengthened their laws to prevent money laundering and terrorist financing. After Binance halted its operation in mid-May, the number of companies who are ditching operations in the country have increased by 25%. As of the registration data, only six crypto firms have registered. Dozens of more firms are still being accessed, however not any of them have been approved or deemed fit or proper to operate. As per a spokesperson, more than 64 firms have already withdrawn their application while the number in early June was only 51. The FCA has mandated all firms to apply for the license since the start of the year.
FCA Registrations Doesn’t Guarantee Protection of the Consumers
FCA has been overlooking money laundering issues related to cryptocurrency since the previous year. The compulsory registration scheme for the crypto businesses came with a deadline of one year. For the same reason, the FCA has been forced to extend the deadline of temporary registrations regime’s for another 9 months to March, 2022. As per FCA, the new end date of the registrations has been shifted to March 2022 from July 2021. FCA has been keen on the crypto market and the risk associated with it and announced that a FCA registration doesn’t guarantee the protection of clients in any way.
Earlier this month, the FCA had launched a notice to the consumers about 111 unregistered crypto firms and called their operations very risky. Binance has already been instructed to halt its operations in the UK. In the announcement issued by the FCA, they mentioned that most firms advertising and selling investments in cryptocurrency aren’t licensed under the FCA. And if anything goes wrong while they invest in the company, the Financial Ombudsman Service or the Financial Services Compensation Scheme won’t be accessible to them. The heightened regulatory scrutiny has in fact influenced other crypto firms to withdraw from the registration procedure.