Cryptocurrency companies in UK are readying to leave the country as the Financial Conduct Authority (FCA) has not yet provided clarity for the majority of applicant even though it plans to shutter its temporary registration regime for crypto businesses on March 31, Bloomberg has learned.
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According to the report, at least twelve firms, including crypto custodian Copper and fintech bank Revolut remained on the temporary register. At the same time, six companies, including B2C2, Wirex and Trastra withdrew their applications last week without getting authorization from the FCA. Although the FCA may extend its deadline one more time like it did in June 2021, some crypto companies have started the process of relocating their operations abroad, Bloomberg notes.
Previously, the Bank of England (BoE) started its work on the country's first regulatory framework for cryptocurrencies. Even though the market is relatively small, the financial regulator is afraid of risks that might be substantial to financial stability in future.
Although the BoE did not explain how it plans to regulate the nascent market of the digital economy, the FPC noted that regulation should be based on "equivalence," adding that crypto firms that provide financial services are subject to the same the same laws that applicable to the banking industry.
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