The UK crypto industry saw very few numbers of crypto companies, operating services under temporary registration with the UK’s regulatory body.
The UK is a blockchain-friendly region in the world, where it is rapidly moving toward the adoption of this tech industry but at the same time, it is introducing strict rules and laws to protect the citizens from this highly volatile market of crypto industry. Financial Conduct Authority (FCA) is a responsible agency of the UK to regulate the crypto companies under strict rules of nation, like AML and prohibition of terrorist funding.
31 March was the last date for all the crypto companies in the UK to operate their crypto services under the temporary regulatory registration that they received from the regulators in the past. However on 30 March, FCA released an official statement that such crypto companies, which were operating services under a temporary regime, may continue to provide services but these companies needed to work to get full regulatory approval from the agency. Now the number of crypto companies, operating services under temporary registration, is only 5.
The regulatory body officially released a total of 5 numbers of temporarily registered crypto companies, which are CEX.IO, Revolut, Copper, Globalblock, and Moneybrain.
Besides these companies, only 34 registered crypto companies are operating services since August 2020 under full regulatory approval.
When, on 30 March, FCA released its extension of the temporary registration date then at that time 12 companies were providing services but now Sudden decline to 5 is a hint that the majority of the companies came to know that they may not successfully collect full regulatory approval to provide services, that is why they decided to quit.
Strict standards of FCA
Under the strict standards and provisions of the UK’s FCA, the majority of the companies found it tough to provide services under full compliance, and also it is not easy for any new company to get into the crypto industry of the UK.
Recently FCA ordered all the crypto Companies to close and shut down the Bitcoin ATMs kiosk, running in the UK, because no one crypto company has regulatory approval to operate Bitcoin ATMs.
Interestingly on Monday of this week, HM Treasury annnouced to work on a regualtory framework to use stabelcoins in the payment options.