So far, 64 crypto companies have withdrawn their FCA registration applications.
Binance, which has been served with a consumer warning by the FCA over its operations in the UK, is one of those experiencing regulatory issues.
The Financial Conduct Authority (FCA) has recently been approved to regulate the expanding number of crypto companies in the United Kingdom. This was one of the steps used to make the public aware of businesses that adhere to suggested government restrictions. To avoid money laundering and terrorist financing, the government wants to put cryptos under close inspection. Some crypto companies, on the other hand, have abandoned their attempts to register with the financial regulator. Even those who had submitted an application for registration are starting to back out. According to estimates, 64 companies have changed their minds and withdrawn their applications thus far.
Only six crypto firms have received successful authorisation, according to a representative for the FCA, with a dozen others completing evaluations but judged unable to function.
Most of these companies, according to the FCA, do not meet the regulatory requirements to operate in the UK.
A large number of enterprises are failing to achieve the requisite criteria under the Money Laundering Regulations, resulting in an unprecedented number of applications being withdrawn.
The FCA has issued a warning to Binance.
Binance, one of the largest cryptocurrency exchanges in the world, has also been issued a consumer warning for failing to meet the FCA’s guidelines. Binance is not permitted to engage in any regulated activity without the FCA’s express consent, according to the regulatory agency.
The Binance Group appears to be offering a variety of products and services to UK customers via a website called Binance.com… No other entity in the Binance Group is authorized, registered, or licensed to operate a regulated activity in the United Kingdom.
Binance is likewise operating unlawfully in Japan, according to the Financial Service Agency. Despite these concerns, Binance has yet to speak publicly on the subject. The exchange, on the other hand, consistently highlights that it works closely with regulators and law enforcement to promote the crypto ecosystem’s security and sustainability while offering the best possible experience to its clients.
The FCA has teamed up with a number of high-profile international regulators in the United States and Asia to create a secure environment for crypto operations and decrease user risk.
In the recent few years, the United Kingdom has seen a significant increase in cryptocurrency use. According to one study, the number of persons purchasing cryptocurrency in the United Kingdom has surged by 558 percent during 2018. These figures have prompted the government to examine the various businesses that provide services to its inhabitants.
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