Regulations and demands set by The UK’s Financial Conduct Authority seem difficult for crypto businesses in the country to adhere to, hence they are taking their leave.
Crypto firms seeking to operate in the United Kingdom are apparently finding the Financial Conduct Authority’s (FCA) crypto licensing framework difficult.
According to a Reuters article published on Tuesday, the number of abandoned crypto licence applications jumped by more than 25% in June.
Indeed, around the beginning of the month, Cointelegraph reported that 51 crypto businesses had withdrawn previously filed registration applications with the FCA.
According to Reuters, another 13 companies have withdrawn from the certification process, increasing the total number of withdrawals to 64.
The FCA has been in charge of anti-money laundering compliance in the country’s crypto sector since January 2020. The agency established a registration procedure for bitcoin enterprises at the time, with a one-year starting deadline.
However, due to a backlog of licensing applications, the FCA was forced to adopt and prolong a temporary registration system.
These companies must stop all crypto-related activity if they leave the licensing process, or face fines and legal action from the FCA.
However, some businesses that aren’t subject to the AML mission of the agency may be able to continue to provide services.
The Financial Conduct Authority (FCA) issued a warning to UK consumers in June about 111 unregistered crypto firms in the country.
The slew of withdrew applications comes as crypto exchanges face greater regulatory scrutiny in a number of locations. The Financial Conduct Authority (FCA) has taken action against a number of prominent platforms, including Binance.
Aside from the United Kingdom, regulators in Japan and Ontario, Canada have also issued Binance warning notifications. In May, the crypto exchange giant apparently abandoned its bid for a license in the United Kingdom.
For Yoni Assia, CEO of trading platform eToro, industry participants should expect even more regulatory actions from state agencies.
However, the eToro boss advised regulators to improve their knowledge of the cryptocurrency space and come up with nuanced policies.