Amid the ongoing regulatory crackdown on cryptocurrency exchange platforms in the United Kingdom, Britain’s financial-regulation agency, the Financial Conduct Authority (FCA), has given the go-ahead to five crypto companies to do business in the U.K., albeit temporarily.
It can be recalled that the FCA has set a deadline for all crypto firms operating in the U.K. to register their company’s details with the body before the deadline. The five companies given the temporary operating license failed to meet the registration deadline, which ended last week. Although, their application status with the FCA was still pending.
The U.K.’s financial watchdog has been on the heels of many crypto firms for some time now as it seeks to regulate the digital asset ecosystem following various complaints of irregularities against some crypto exchange firms.
Temporary Registration for Five Crypto Exchanges
Accordingly, the FCA last Thursday updated its list of the firms that would be issued temporary operating licenses following their inability to register during the previous registration window.
The five firms included in the latest list include Globalblock Ltd., MoneyBrain Ltd., Cex.io Ltd., Copper Technologies Ltd., and Revolut Ltd.
Meanwhile, towards the end of last month, the FCA revealed that it had extended the registration deadline to enable some crypto firms to meet the official requirements. There were only 12 companies on the temporary list, and those not on the newly released list will not be allowed to continue operating after April 1st.
So far, 33 firms have been registered by the financial regulator. The spokesperson for the FCA disclosed that the regulatory body has been reviewing the applications filed by crypto-asset entities to ensure that the minimum requirements are satisfied by the firms.
Furthermore, the spokesperson added that the FCA would ensure that only the right firms that meet the standards are allowed to operate. The body has the suitable systems to identify and nip in the bud illegal financial transactions.
Britain’s Push to Become a Crypto Hub
The U.K.’s government has unveiled an audacious roadmap to make the country one of the leading players in the crypto ecosystem. It strives to make Britain a global digital financial asset hub.
Regulation of the supply and circulation of stablecoins has become the first step in the series of moves taken by the government. Rishi Sunak, Chancellor of the exchequer, has suggested the Royal Mint develop an NFT to be issued this coming summer.
According to Sunak, the dream is to make the U.K. a global center for crypto and other digital asset technology with the right policies in place. Additionally, Sunak disclosed that the measures put in place make crypto firms more innovative and scalable in the country. Therefore, the government is prepared to make the industry safe for investors and traders.
The U.K. has been among the European countries that have embraced the digital financial revolution, sweeping the financial sector’s regulation as the best method to ensure the expansion of the industry.