Cryptocurrency is not a good thing in the United Kingdom, at least for the time being unless the regulatory authority starts thinking over it the other way. The Financial Conduct Authority has lately notified several crypto firms that their temporary approval of operation in the country has been rejected. The companies are left with just two simple options, either to withdraw the applications or risk rejection.
A couple of firms have withdrawn their applications including SBI-owned B2C2, which is considered one of the largest market makers in the segment. Henceforth, all its trading activities of it will be operated by the B2C2 USA. However, the derivatives trading business will be continued overseenbythe UK watchdog.
A company spokesperson said they are committed to the norms of FCA and are now closely working with the clients to ensure them seamless trading experience.
Meanwhile, the FAC spokesperson said the registry requirement is of a high standard to ensure the companies are not engaged in money laundering and they can manage properly the financial crimes.
Copper and Revolut are two other big names that will be wrapping up the crypto business from the UK. The fate of such companies is uncertain. It is not possible for them to operate without achieving full registration.
According to capital markets advisor Alex Wilkinson, the high registration standard of FCA is driving away businesses from the country and this may lead to a significant effect on tax revenues. The position of FCA as a premier regulator may even get eroded gradually compared to those in Singapore, Germany and Switzerland.
FCA is an abbreviation of the Financial Conduct Authority. It is based in London and looks after the financial services industry in the UK. It was formed in April 2013 and replaced the preceding one named the Financial Services Authority. It is an independent body and manages the expenses from fees paid by members.
Cryptocurrency is the latest development in the world of currency and exists only in digital forms. It has no physical form like fiat currencies. It is based on blockchain technology and the transactions are recorded in the public digital ledger. Bitcoin was the first type of cryptocurrency and was launched in 2009. Since then it has gained immense popularity as well as value. Today, thousands of cryptocurrencies are available such as Ethereum, Litecoin and Dogecoin.