The Financial Conduct Authority has not registered a crypto firm for six months. The regulator says the firms are failing to meet anti-money laundering standards. However, it is working with organizations on compliance.
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GM, Joanna Here.
The industry's dreams of making the UK a crypto haven have been put on hold after the Financial Conduct Authority has not approved any crypto businesses for six months.
In 2022 when the now defunct Prime Minister Rishi Sunak was Chancellor of the Exchequer, he Promised To make Blighty a “Global Cryptoasset Technology Hub”.
That promise now seems far from over.
Institutional market-maker Portofino Technologies was the last firm to be registered by the Financial Conduct Authority in February. Registry of the Regulator.
Registry data Updated 1 August The FCA received 34 applications in the last 12 months, four of which were successful.
Apart from Portofino, the firms approved during that period were crypto bank Banxa UK, payments giant PayPal and custodian Coimanu.
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Of the first 34, 16 withdrew before their applications were approved or rejected.
Firms must register with the FCA if they want to offer services such as crypto trading or offering wallets.
But lobbyists complain that the FCA's rules are prescriptive, burdensome and confusing – particularly those covering marketing to consumers.
Both Binance and PayPal have suspended crypto services in the UK due to these so-called promotion rules.
The FCA published a report this month on how well crypto firms have complied with various aspects of the rules, which began in October.
“For many UK cryptoasset firms, this is the first code of conduct they will need to adhere to, and will require them to invest in significant technological developments,” the report said.
Crypto firms must be 'fit and proper'
FCA protects Its low rate of registrations means that many crypto firms fail to meet its anti-money laundering standards.
“We expect firms to be fit and proper and have adequate systems in place to detect and prevent money flows from crime,” an FCA spokesman said. News.
The regulator has a strict consumer protection mandate and the standards that hold firms are “essential to protecting people and the integrity of our economy,” a spokesman said.
After all, losses on crypto investments are not eligible for government compensation in the same way as bank deposits.
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