The strict cryptocurrency regulatory climates of the United Kingdom has made the crypto industry hellish for firms. The procedural stance of the Financial Conduct Authority (FCA) as regards securing a crypto operating license is reportedly very strenuous. Reuters reported on Tuesday that there has been a 25% increase in the number of crypto enterprises that has backed out of the license race.
In line with this, Cointelegraph’s previous report early this month stated that 51 crypto companies had changed their minds as regards their applications for registration with FCA. Reuters reported that a representative of FCA affirmed that 13 more firms had also pulled out of the licensing journey, thus bringing the number to 64.
Since January last year, the FCA has in addition to its laid down duties adopted the role of ensuring that the crypto industry operates in line with the Anti-Money Laundering (AML) policies put in place for them. Within the same period, the board also initiated a scheme that demanded the registration of crypto enterprises within a limited period of 12 months. However, the time for the registration has been extended.
All the crypto firms that abandoned their registration processes midway must stop operations as they are not free to engage in crypto transactions anymore. Failure to do so might attract sanctions or being dragged to the court by FCA. However,Companies that are not affected by the AML policy are free to continue operations.
Aside the registration palaver, the crypto industry has been under intense supervisions as evidenced by Binance recent issue with FCA. Binance has also received cautionary notices from financial regulatory bodies of other countries. The crypto firm is reportedly amongst the U.K tired license chasers.
The CEO of the exchange platform, eToro, said more stringent measures would be meted out to the crypto industry by these supervisory bodies. He opined however that the regulatory bodies should study the cryptocurrency ecosystem to know more about it so that they will be more equipped to make informed decisions.
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