Just 33 cryptocurrency firms have been registered so far under the UK FCA’s covered register, with the deadline looming for the watchdog to grant the firms approval before 31 March. So far, 80% of the applications for the registration have been rejected by the authority or withdrawn.
There are many companies, as of press time, that are operating under a temporary register ahead of the deadline.
“We’ve seen a high number of the cryptoasset businesses applying for registration not meeting standards there to help ensure firms are not used to transfer and or disguise criminal funds. Firms that do not meet the expected benchmark can withdraw their application. Firms that decide not to withdraw have the right to appeal our decision to refuse, including through the courts,” a spokesperson from the FCA told City AM.
Companies like Revolut, Copper and Blockchain .com are in limbo because they are operating within a temporary register while awaiting final approval from the regulator.
“This is an incredible piece of market innovation and as the world moves into Web3… I don’t think trying to hold people away from it is either realistic or a good idea. The FCA’s role is to apply the law not write the law, and it needs a steer from policymakers – that’s what we need to hear,” Charles Kerrigan, a Fintech partner at law firm CMS, commented on the matter.
Cases against Unregistered Crypto Firms
Early this month, the UK FCA announced that it is taking assertive action against the rampant financial scams in the consumer investment market. In addition, it has alarmed investors against scams involving crypto assets, boiler rooms and recovery rooms.
The financial market supervisor said that it has received 16,400 inquiries between April and September last year about possible scams, a figure that is around 30 percent higher than the previous year.
