Cryptocurrency companies are dropping the United Kingdom as one of the preferred jurisdictions as the number of withdrawals of the applications for regulatory registration has increased significantly. Registration data from the Financial Conduct Authority (FCA) showed that over 64 crypto related companies had withdrawn their applications, up by 51 in early June. Since these firms have retracted their applications, they will not be allowed to operate in the country.
Starting in January, firms that were conducting business in cryptocurrencies have been required to register with the regulatory body prior to operating. Due to the immense volume, the regulator extended the temporary registration regime for digital asset firms.
Since early June, FCA noted that over 100 crypto-related firms are still unregistered. The approval process has been prolonged, and out of the numerous submitted applications, the British regulator only gave the green light to six firms, including Gemini and Arca.
Dozens of other companies are still being assessed while not yet considered to be “fit and proper,” according to the watchdog. The regulator is increasing the temporary relief to crypto companies until March 2022.
The FCA seems to be launching its crackdown on crypto companies. Recently, the FCA head of enforcement revealed that 111 unregistered crypto companies are operating in the country. The FCA stated that the major digital asset exchange platform Binance, is illegally operating in the country. Therefore, Binance withdrew its registration application with the FCA in mid-May, which may have led to the issuance of the recent warning.
All of this comes at a time when demand for crypto is skyrocketing in the country as the number of crypto-holding adults jumped to 2.3 million.
