Number of UK Crypto Firms Operating Under FCA Temporary Registration Status Decreasing
The number of firms licensed to offer crypto services to UK residents under the Financial Conduct Authority’s temporary registration status has been reduced from 12 to five.
According to a Thursday update to its list of “cryptoasset companies with temporary registration”, the UK’s financial regulator appointed CEX.IO, Revolut, Copper, Globalblock and Moneybrain as crypto space companies licensed to operate in the country in addition to the 34 registered crypto-asset businesses that the FCA has approved since August 2020. The FCA said on March 30 that it would extend temporary registration status for “a small number of businesses where strictly necessary,” which included 12 companies at the time.
In the UK, companies allowed to “carry on crypto-asset business” must either be registered with the FCA or given temporary status – originally set to expire in March 2022 – following a crackdown anti-money laundering (AML) and anti-money laundering. Terrorist Financing Compliance (CFT). Last year, the FCA ordered Binance Markets Limited to halt “all regulated activity in the UK” and issued a “shut down or face other action” order for local Bitcoin ATM operators. Many crypto firms have withdrawn their registration applications entirely.
The change came following an announcement on Monday in which the UK Treasury said it would modify its existing regulatory framework to incorporate stablecoins used as a means of payment. According to FCA’s strategy for the next three years, work with the UK government to develop a regulatory approach to crypto-assets, including stablecoins, as well as a crackdown on “problem businesses” within its jurisdiction.
In line with our new strategy and annual business plan, we plan to hire 80 new people to focus on getting problem companies out of the market faster. https://t.co/efSdRG31cl
— Financial Conduct Authority (@TheFCA) April 7, 2022
Related: FCA reiterates authority to ‘suspend or cancel’ registrations of crypto firms following Bifinity concerns
It is unknown how long CEX.IO, Revolut, Copper, Globalblock and Moneybrain will continue to be allowed to operate under this temporary registration status. The FCA did not specify a new deadline for approving or rejecting the company’s registration, but previously extended the review period from July 2021 to March 2022.