64 companies have withdrew their applications to conduct business in the United Kingdom, indicating that crypto firms are preparing to leave the country.
Since January, the FCA has required digital asset firms to register with the regulator before operating in the nation.
Many firms have withdrawn their applications with the FCA due to the FCA’s slow approval process.
While the country continues to tighten crypto legislation, over 60 cryptocurrency firms have withdrew their applications to conduct business in the UK with the Financial Conduct Authority (FCA).
According to FCA registration data, 64 crypto-related companies have withdrawn their applications, up from 51 in early June. These companies will not be allowed to operate in the country since they withdrew their applications. Because of the excess,
Companies that conduct business in cryptocurrencies have been required to register with the regulatory authority before functioning since January. The regulator has extended the temporary registration procedure for digital asset enterprises due to the high volume.
Since early June, the Financial Conduct Authority (FCA) has highlighted that over 100 crypto-related businesses have remained unregistered. The certification process took a long time, and the British authority only approved six companies out of the many that were filed, including Gemini and Arca.
According to the watchdog, dozens of additional companies are still being reviewed and are not yet certified “fit and appropriate.” Until March 2022, the regulator is extending the interim respite granted to crypto firms.
Last week, the FCA issued a warning against top cryptocurrency exchanges, signaling its growing antipathy against the industry. According to the financial watchdog, a major digital asset trading platform is functioning unlawfully in the country.
Binance withdrew its application for FCA registration in mid-May, which may have prompted the current warning. According to a Binance representative, the company is working closely with the British authorities to improve the industry’s security and long-term viability.
While the UK tries to tighten its grip on the new asset class, the FCA’s head of enforcement observed that there are already 111 unregistered crypto businesses operating in the country. This comes at a time when demand for digital assets is increasing, with 2.3 million individuals in the country holding cryptocurrencies.
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