The United Kingdom’s financial regulator, the Financial Conduct Authority, has increased the provisional registration status of some of the crypto firms that offer services related to cryptocurrency and other digital assets beyond its deadline on Friday.
On Tuesday, in a statement, the FCA has declared that a minute number of companies in the cryptocurrency industry will go on to possess provisional registration status in the United Kingdom because of the necessity. FCA has went on to say that even though the financial regulator has temporarily increased the registration of the crypto firms, that does not necessarily indicate that the FCA thinks the companies are fit to conduct business in the country.
Only the companies that are registered with the FCA or are mentioned in their list can freely conduct business in the crypto industry, while other firms must stop trading and providing any kind of services. The firms that have not stopped their services will be charged with FCA’s civil enforcement and criminal powers.
Since August 2022, the FCA has approved a total of 33 crypto companies that can conduct business in compliance with the laws of the United Kingdom. FCA is responsible for preventing money laundering, handling transfer funds, and fighting financial terrorism. In this case, the regulatory body has allowed the temporary status of the company to conduct business until FCA reaches a decision on whether these companies can continue their businesses in the United Kingdom and the status of the validity of their applications.
A lot of cryptocurrency firms withdrew their applications from FCA after their crackdown on CFT and AML with the 2020 compliance. The FCA also ordered the Bitcoin ATM operation on March 13 to shut down because of its regulatory structure and volatility of specific assets.
