A growing number of crypto firms in the U.K. are withdrawing their applications to register with the Financial Conduct Authority (FCA). Around 64 firms have already withdrawn their applications and will not be able to operate in the U.K.
The list of cryptocurrency companies abandoning their attempts to register with the U.K.’s financial regulator is growing, Reuters reported Monday.
Under the current crypto regulation, the Financial Conduct Authority (FCA) is responsible for ensuring crypto companies’ compliance with laws on the prevention of money laundering and terrorist financing.
Companies wanting to provide crypto-related services in the U.K. must register with the FCA before conducting business.
An FCA spokesperson said Monday that registration data shows the number of companies that have ditched their applications jumped by 25% in less than a month.
Around 64 companies have withdrawn their applications, the spokesperson said, up from 51 in early June.
Only six firms have successfully registered with the FCA so far, the publication conveyed, adding that dozens more companies are being assessed but they are not yet deemed “fit and proper.”
The FCA issued a consumer notice on Binance Friday, banning the exchange from engaging in “regulated activities” in the U.K.
What do you think about crypto firms exiting the U.K. due to regulation? Let us know in the comments section below.
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