The number of firms allowed to offer crypto services to UK residents has dropped from 12 to five.
According to a list of “cryptoasset firms with temporary registration” updated on Thursday, the UK’s financial regulator named CEX.IO, Revolut, Copper, Globalblock and Moneybrain as firms in the crypto space that are allowed to operate in addition to those in the country 34 registered crypto asset firms have been allowed by the FCA since August 2020. The FCA said on March 30 it would extend temporary registration status to “a small number of firms where strictly necessary”, including 12 firms at the time.
In the UK, firms allowed to “carry out crypto-asset activities” must either be registered with the FCA or have been granted temporary status – originally scheduled to expire in March 2022 – following a crackdown on money laundering (AML) and countermeasures Compliance with Terrorist Financing Regulations (CFT). Last year, the FCA ordered Binance Markets Limited to cease “all regulated activity in the UK” and issued an order for local bitcoin ATM operators to “close or face further action.” Many crypto firms withdrew their registration applications entirely.
The change comes after an announcement Monday in which HM Treasury said it would change its existing regulatory framework to include stablecoins as a means of payment. Per the FCA’s strategy for the next three years, it will work with the UK government to develop a regulatory approach to crypto assets, including stablecoins, as well as a crackdown on “problem firms” in its jurisdiction.
In line with our new strategy and annual business plan, we plan to hire 80 new employees to focus on getting more problem companies off the market faster. https://t.co/efSdRG31cl
— Financial Conduct Authority (@TheFCA) April 7, 2022
Related: FCA reiterates power to “suspend or cancel” crypto firm registrations after concerns raised by Bifinity
It is unclear how long CEX.IO, Revolut, Copper, Globalblock and Moneybrain will be allowed to continue operating under this temporary registration status. The FCA has not set a new deadline for approving or disapproving the firm’s registration, but previously extended the review period from July 2021 to March 2022.
https://cointelegraph.com/news/number-of-uk-crypto-firms-operating-under-fca-temporary-registration-status-drops The number of UK crypto firms operating under the FCA’s temporary registration status is falling