The financial conduct authority (FCA) showed some positive support for crypto firms through its plan to extend the deadline for registration.
At present, UK’s financial watchdog agency FCA is active strictly against crypto circulation in the UK through the limited and slow issuance process of crypto licenses. At present, a total of 100 companies are on the waitlist to get regulatory approval from FCA to provide crypto offerings, while 33 crypto companies are operating businesses under license. Overall we can say Monopoly is in existence in the UK because of a limited number of crypto companies.
Few crypto platforms are providing their crypto services in the UK under the temporary regulatory approval by UK watchdogs. 31 March 2022 was the last date for the temporary license validity for the crypto companies and were ordered by the regulatory body in advance that companies will have to receive full regulatory approval before the deadline.
Many crypto companies failed to get full regulatory approval within the time frame of 31 March, however, there are strict rules in the UK for crypto companies but also on the other hand crypto license issuance system is very slow, so there was some fault by FCA also.
By keeping these things into consideration, the FCA agency published its official statement regarding this matter and noted that many small crypto companies, which were providing crypto services, will have the authority to continuously provide services under the existing temporary regulatory registration license.
With this announcement, FCA also confirmed that this extension of the deadline is not a sign for these crypto companies that they are in full compliance with FCA.
At the same time, FCA also warned the crypto companies to cease all operations which are not registered with FCA or not under the temporary registration, otherwise, FCA will consider their crypto services as a part of illegal activities.
“Only firms that are registered with us or on our list of firms with temporary registration can continue trading…(..)…Other firms must have ceased trading from 10 January 2021.”