Under provisional registration status from the Financial Conduct Authority, the number of organisations allowed to sell crypto services to UK residents has decreased from 12 to five.
CEX.IO, Revolut, Copper, Globalblock, and Moneybrain were added to the 34 registered crypto-asset firms the Financial Conduct Authority has accepted since August 2020 in a Thursday update to its list of “Cryptoasset firms with Temporary Registration.” On March 30, the FCA said that it will renew the interim registration status for “a small number of organisations where it is strictly necessary,” which at the time included 12 businesses.
Firms authorised to “carry out crypto asset activities” in the United Kingdom must either be registered with the Financial Conduct Authority or have been granted temporary permission — initially due to expire in March 2022 — following a crackdown on AML and CFT compliance. The FCA has ordered Binance Markets Limited to cease “any regulated activity in the United Kingdom” and local Bitcoin ATM operators to “close down or face further action” in the past year. Many cryptocurrency companies have completely withdrawn their bids for registration.
FCA to collaborate with UK government to build a regulatory framework
Following HM Treasury’s declaration on Monday that it would update its existing regulatory framework to include stablecoins as a form of payment, the adjustment was made. According to the Financial Conduct Authority’s three-year strategy, it will collaborate with the UK government to build a regulatory framework for crypto-assets, including stablecoins, as well as a crackdown on “problem enterprises” under its jurisdiction.
It’s unknown how long CEX.IO, Revolut, Copper, Globalblock, and Moneybrain will be able to continue operating under this interim registration status. The FCA did not set a new deadline for approving or rejecting the firm’s registration, although it did prolong the evaluation period from July 2021 to March 2022.