The United Kingdom watchdog has placed a deadline for the registration process of the crypto businesses. A temporary shutdown has been proposed and big companies like Copper Technologies and Revolut will be in limbo. It is learned about a dozen crypto companies are now under temporary registration.
China had earlier banned cryptocurrencies and both companies and miners had to leave the country. The same may happen in the UK as the Bank of England has lately ramped up its efforts in anti-crypto rhetoric after the market is on the bull run and crypto prices have surged. As of now, just 33 crypto companies have accessed permanent registration. Others are planning to make a move to European countries like Croatia and Switzerland as these governments have a welcoming approach.
Six crypto companies including a couple of apps were recently removed from the registration due to failure in securing approval.
CoinBurp failed to secure approval late last month along with a couple of more including Wirex Digital. These companies are now planning to serve the British clients from their Croatian subsidiaries.
CoinBurp CEO Peter Wood confirmed the company will not be providing cryptocurrency services in the country, but they are trying to restore it soon. The copper crypto custodian is based in London and equipped with over 150 employees. It has applied for approval in Switzerland.
The UK is now a hub of crypto, fintech and blockchain activity. Exchequer Philip Hammond's former UK Chancellor said the country is much behind some of the European countries with respect to crypto segment regulations. It may lead to losing the status of a financial hub in the future.
Binance is one of the largest crypto exchanges in the world and it had to pull back its application in 2021. It is looking for an easy option now and may serve the UK clients from another country.
FCA is the acronym for the Financial Conduct Authority and was formed in April 2013. It is a financial regulatory body and operates independently. It finances itself from the fees received from the members. It regulates the financial companies that serve consumers. It focuses on both wholesale and retail financial firms.
Cryptocurrency is a digital currency. It has no physical existencebut is used as a medium of exchange with the help of a computer network. It is decentralized and not under the direct control of any authority, bank or government. The transactions are recorded in a public digital ledger.
Bitcoin is the first cryptocurrency. It was launched in 2009. Several more cryptocurrencies were created by various companies. Some of the well-known ones include Ethereum, DOGE and Ripple.