Strict Rules Of FCA Restricting Exchanges To Run Their Services
It seems that local and international cryptocurrencies in the United Kingdom do not meet the strict requirements set by financial regulators.
The crypto licensing regime of the United Kingdom Financial Conduct Authority (FCA) proves tough for the cryptocurrency businesses that want to operate in the country.
The number of licensing applications withdrawn from crypto businesses rose 25% in June, a Reuters report said on Tuesday.
While earlier this month, we already reported that 51 cryptocurrencies had withdrawn their files for registration with the FCA. An FCA spokesman quoted by Reuters said that 13 companies had dropped out of the approval process, thus bringing the total number of withdrawals until now to 64.
Back since January 2020, the FCA has been monitoring the anti-money laundering compliance in the country’s crypto sector. At that time, the agency launched a registration scheme with an initial one-year deadline for running cryptocurrency businesses.
By exiting the licensing process, these companies must terminate all activities related to cryptocurrencies or risk FCA penalties and legal action. However, it may continue to provide services to certain companies that do not fall within the agency’s AML mandate.
The series of this application withdrawal comes with subject to regulatory scrutiny at many jurisdictional crypto exchanges. The FCA itself has taken action on some major platforms, including Binance.
In addition to the UK, regulators in Ontario, Japan, and Canada have issued warning notices to crypto exchange giant Binance. The crypto exchange giant also recently withdrew its licensing application from the UK regulations in May.
According to the CEO of trading platform eToro, Yoni Asia industry partners should expect further regulatory action from state-owned enterprises. However, eToro Boss also advised regulators to improve their knowledge of the cryptocurrency space and come up with better clever approaches.
Read also: Indians Are More Eager For Crypto Investment Than Gold
