Many crypto businesses in Britain are at risk of going out of business when they are unable to register with the Financial Conduct Authority (FCA), the country’s largest financial regulator.
The deadline for crypto businesses to be March 31 has been set as the maximum registration deadline.
Previously, the authority extended the deadline by allowing companies registered in the temporary registry to continue operating in the country even while applying for a full authorization, with only 33 applications approved.
Crypto firms like Revolt and Cooper, which are on the temporary registry, have lost compliance with all authorization requirements, causing their applications to be withdrawn or denied, and now have only a few days to comply. anti-money laundering standards. or they may not be able to operate in the country again.
Speaking to Jeff Hancock, CEO of Coinbase, who has drawn on the experience to ensure the UK-based platform is FCA compliant, said: “The FCA process towards becoming cryptocurrency business compliant has been a very long line. blurred and difficult to cross. . Not all companies are measured by the same standards based on their size, complexity, currencies offered, business models, how they handle customer risk, and suitability. While we agree that compliance is important, we are asked to judge the suitability of our clients to trade cryptocurrencies without proper frameworks and guidelines.”
While the FCA is committed to upholding the high standards of crypto businesses in the country, many question how the authority manages registration processes and some have stated that the regulator’s inactivity in handling applications played a role in the current situation. .
Hancock also commented, “The process also differed from Know Your Customer (KYC) and Anti-Money Laundering (AML) in requiring business cases and continuity plans in terms of our team size, marketing, margin pressure and future lines of business. UK investors while offshore platforms continue to do as they please, hampering UK fintech innovation.”
According to a spokesman for the regulator, some companies that apply for registration do not meet the required criteria that can help them identify illicit funds.
He continued, that companies whose applications were rejected can appeal the decisions through the regulator or by going to court.
The move will affect the UK cryptocurrency industry as companies unable to complete their registrations may be forced to move their operations abroad, according to new registration criteria from the Financial Conduct Authority (FCA).