Sixty-four crypto firms have so far withdrawn their registration application with the FCA.
One of those facing a regulatory issue is Binance which has been served with a consumer warning by the FCA over its operations in the UK.
It was recently reported that the Financial Conduct Authority (FCA) has been authorized to supervise the growing number of crypto firms in the UK. This was part of the measures to inform the public of firms that comply with proposed government regulations. The government is looking to subject cryptos to critical scrutiny to prevent money laundering and terrorist financing. However, some crypto firms have ditched their attempt to register with the financial watchdog. Even some that submitted their registration application are beginning to withdrawing. According to reports, roughly 64 firms have so far changed their minds and pulled their applications.
In a statement by the FCA spokesperson, only six crypto firms have had a successful authorization with a dozen others undergoing assessments, but deemed not fit to operate.
According to the FCA, most of these firms do not meet the regulatory requirement to operate in the UK.
A significantly high number of businesses are not meeting the required standards under the Money Laundering Regulations resulting in an unprecedented number of businesses withdrawing their applications.
Binance has been called out by the FCA
Binance, one of the largest crypto exchanges in the world, has also been served with a consumer warning as it does not meet the requirements of the FCA. According to the regulatory body, Binance is not permitted to undertake any regulated activity without a written concern of the FCA.
The Binance Group appears to be offering UK customers a range of products and services via a website, Binance.com… No other entity in the Binance Group holds any form of UK authorization, registration, or license to conduct a regulated activity in the UK.
Japan’s Financial Service Agency has also stated that Binance is operating illegally in the country. Regardless of these warnings, Binance is yet to make any public comment on the situation. However, the exchange always emphasizes that it works closely with regulators and law enforcement to strengthen security and sustainability in the crypto ecosystem while providing the best of experience to its customers.
The FCA has aligned with several high-profile international regulators in the US and Asia to provide a safe environment for crypto operation and reduce the risk exposure for users.
The UK has recorded substantial growth in crypto adoption in the last few years. According to one research, the number of people who bought crypto in the UK has increased by 558 percent since 2018. These numbers have encouraged the government to take a hard look at the different firms offering services to its citizens.
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