From January 2020, around 300 cryptocurrency companies have sought registration with the Financial Conduct Authority (FCA), but only 38 of them have received approval.
Since January 2020, about 291 cryptocurrency companies have sought permission to operate from the Financial Conduct Authority (FCA), the UK’s main financial regulator. However, only 38 of these companies, which is about 13%, have been granted approval to function in the country.
On August 11, the FCA responded to an undisclosed requester’s inquiry, addressing four questions related to the registration statistics of crypto businesses. The FCA shared that it received a total of 291 applications for registration since 2020, out of which only 38 were approved.
Among the applications, 155 were withdrawn by the companies themselves. The FCA encourages these firms to reapply when they meet all the required criteria. The FCA also emphasized that firms need to provide essential information according to regulation 57 of the MLRs, and applications lacking the necessary information will be rejected.
In the UK, companies that want to conduct crypto-related activities need to either register with the FCA or have temporary operating permission. Earlier, the FCA told Binance Markets Limited to stop operating in the country and issued similar orders to local crypto ATM operators, giving them the choice to shut down or face additional actions. As of now, the FCA’s list of registered crypto service providers has 42 names on it, including well-known entities like Skrill, eToro, and Gemini.
During July, the FCA sent a reminder to all crypto companies in the UK to ensure their marketing follows the financial promotions rules by October 2023. Earlier, the FCA proposed that crypto firms use a marketing method that gives customers time to think about the risks before investing in digital assets.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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